The sharp correction witnessed in Adani Group stocks following Hindenburg Research report dated January 24, may have paused for a bit, following a large investment of Rs 15,500 crore made by marquee investor, GQG Partners, but the move in its 15 bonds still suggests all may not be well as yet.

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Most of the group's 15 US Dollar bonds are off their lows hit right after Hindenburg’s January 24 report. However, all but one are in the red today, despite the big sentiment shift in the equity market.

Four of the group's notes, due for redemption by the end of 2026, are trading between 84 cents to 94 cents on the Dollar, down from 91 cents to 99 cents before the report was released. Despite this, there is still a relatively low-payment risk.

However, it is a different picture for bonds with maturities further down the road. Seven of the group’s 11 notes due in or after 2027 are trading below or near 70 cents on the dollar, a level that defines distress or severe concerns about timely payment.

Current bond prices imply that doubts still linger about the group’s longer-term repayment abilities. These concerns remain even after the renewed efforts to allay investor concerns during a three-day roadshow held in Singapore and Hong Kong, where executives stressed that the group has enough money to repay debt due over the next three years.

The Adani Group will hold fixed-income road shows this month in London, Dubai, and several cities in the United States, according to a document seen by Reuters.

The group has even made early debt repayments to alleviate concerns about its financial position, which has seen $153 billion erased from its stocks since US-based Hindenburg Research’s fraud allegations that the company has vehemently denied.

After a rout that had erased almost two-thirds of their combined market value, the group’s 10 stocks staged a collective rebound Wednesday for the first time since Hindenburg’s report, led by a near 15 percent surge in flagship Adani Enterprises.

In the block deals of four companies, namely Adani Enterprises, Adani Ports, Adani Transmission & Adani Green that have taken place on March 2, promoters have sold stake worth nearly Rs 15,500 crore to GQG Partners, the US-based money manager led by Rajiv Jain.

The surge over the last four days has seen the Adani Group add over Rs 1 lakh crore in market capitalisation.

But, it’s still early days. Stocks of Adani Total Gas, Adani Transmission & Adani Green, which suffered the biggest losses still remain 70% to 80% lower from their Jan 24 levels. Hindenburg in its reports had said that Adani’s seven stocks had sky-high valuations and faced downside of 85%. Much of that slide seems to have already materialized, but could there be more downside for the bonds remains the big question.

Also Read: Adani Group lenders see relief rally as group promoters raise money from GQG Partners

(Edited by : Hormaz Fatakia)