Adani Power shares slide 15 per cent in intra-day

Buzz about the promoters pledging their shares could have triggered heavy sell-off in the counter

Adani Group's power arm, Adani Power Limited witnessed heavy slide on the bourses on Monday. The company shares tumbled by close to 15 per cent in the intra-day trades on the Bombay Stock Exchange (BSE).

Its shares opened at Rs 47.95 today and made the intra-day high of Rs 48.65 before touching the intra-day low of Rs 40.80 on the BSE.

According to analysts, a buzz about the APL promoters pledging their shares could have triggered heavy sell-off in the counter. "There is a buzz about promoters pledging their shares in bulk quantity. However, the quantum could not be known as the company has yet not informed about the same nor has it informed the exchanges about the reason for sharp fall in share prices," said an analyst with Kotak Securities. "Adani Power has high foreign borrowings through external commercial borrowings (ECBs). A recent sharp fall in rupee would increase the interest cost significantly," the analyst informed.

Adani Group officials did not respond to the calls made with regard to the matter.

Out of the total promoter shareholding of 75 per cent, about 13.65 per cent have been pledged or otherwise encumbered by the promoters as on May 28, a recent filing by the company showed.

APL shares ended at Rs 44.20 on Monday, down by 7.5 per cent from its previous close of Rs 47.80 on the BSE.