Adani Group Does Not Face Debt Or Rollover Issue, Says Samir Arora
The trend is likely to subside in the next one to two days, says Arora.
The turmoil in Adani Group stocks will have short-lived repercussions for market sentiments, according to veteran fund manager Samir Arora.
The stocks are currently spiraling because of the recent developments, Arora, founder of Helios Capital, told BQ Prime's Niraj Shah.
"It needs one or two days of level, and then people will in front be covering their shorts... It's all price; if the prices are okay, then everything is okay," Arora said. "I think they have to come out properly and explain if they want again. Although they have, but you can again ask question on my next year's debt repayment."
Adani Group stocks have registered a significant decline over the week after a report by Hindenburg Research alleging "stock manipulation and fraud". The group has called the report a "malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India’s highest courts".
While the group flagship Adani Enterprises Ltd.'s follow-on public offering was fully subscribed, the group decided to call it off and return money citing investor interest.
The Helios Capital founder brushed off concerns over the ports-to-power conglomerate's debt. It's well-placed for the next five to ten years on the credit front, he said.
Even though a default is unlikely, he said, Adani Group has enough assets at its disposal to cover any such shortfall.
"I don't believe one bit that there is a debt issue and a rollover issue... I don't believe that because you can visibly see the assets. If needed you can sell one asset, you can sell two assets, and move on in life," Arora said. "I don't think any of that will be needed."
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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