Adani Enterprises To Move Out From Short-Term ASM Framework: Exchanges

This comes after stocks of eight listed Adani Group firms closed with gains in Monday Trade. Adani Enterprises moved more than 5 per cent amid positive momentum in the broader equity market

The National Stock Exchange (NSE) and BSE on Monday announced that Adani Group’s flagship firm Adani Enterprises will move out from the short-term additional surveillance measure (ASM) framework from March 8. This comes after stocks of eight listed Adani Group firms closed with gains in Monday Trade. Adani Enterprises moved more than 5 per cent amid positive momentum in the broader equity market.

Last month, three Adani Group firms, including the Adani Enterprises, were placed under the short-term additional surveillance measure framework by both the NSE and BSE.

Apart from Adani Enterprises, the other two firms listed by the exchanges were -- Adani Ports and Special Economic Zone (APSEZ) and Ambuja Cements. However, APSEZ and Ambuja Cements were removed from the ASM framework on February 13.

Under the short-term ASM, "Applicable rate of margin shall be 50 per cent or existing margin whichever is higher, subject to maximum rate of margin capped at 100 per cent, with effect from March 09, 2023 on all open positions as on March 08, 2023 and new positions created from March 09, 2023." 

Last week, shares of all listed Adani Group companies rallied. This was after the group solid minority stakes in four of its listed companies to US-based GQG Partners for Rs 15,446 crore.

Hindenburg Research in a January 24 report accused Adani Group of "brazen stock manipulation and accounting fraud" and using a number of offshore shell companies to inflate stock prices. The group has denied all allegations, calling them "malicious", "baseless" and a "calculated attack on India". The report triggered a Rs 12.06 lakh crore sell-off in Adani group's 10 listed firms.

On Tuesday, Adani Group said that it has prepaid share-backed financing of Rs 7,374 crore ($902 million) ahead of its latest maturity in April 2025. The company said that the move is part of its promoters' commitment to cut overall leverage backed by shares of the Group's listed companies.

The company statement said, “Along with the repayments done earlier in the month of February, Adani has prepaid $2,016 million of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before March 32 2023.”