Ambuja Cements, Adani Enterprises sink 30 pc

Shares of Adani group cement companies Ambuja Cements and ACC fell by up to 20 per cent in Wednesday's trade, with Adani Enterprises sinking as much as 30 per cent in trade today.

Ambuja Cements fell 20 per cent to Rs 320.80. ACC, on the other hand, fell 11.13 per cent to Rs 1,750. This is a sign that scrutiny of the Indian tycoon's finances is growing after allegations of fraud by short seller Hindenburg Research, according to a Bloomberg report suggesting that Credit Suisse Group AG has stopped accepting bonds of Gautam Adani's group of companies as collateral for margin loans to private banking clients.

According to people familiar with the matter, the Bloomberg report suggested that Swiss lender's private banking arm has assigned zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai. One of the people told Bloomberg that it had previously offered a lending value of about 75 per cent for the Adani Ports notes.

The Bloomberg report suggested that other banks are lending against Adani debt. According to the people, two European private banks have remained the same as of now, with one of those offering loans of between 75 per cent and 80 per cent for Adani Ports dollar bonds. A rating downgrade could be a possible trigger for lowering, according to the Bloomberg report.

Adani Enterprises plunges 30%, Adani Ports 25%.