Adani securities have attracted attention from opportunistic investors amid a staggering equity rout and a debt slump that took some bonds to distressed levels.
February 03, 2023 / 02:29 PM IST
Goldman Sachs
Goldman Sachs Group Inc. and JPMorgan Chase & Co. have told some clients that bonds related to Gautam Adani’s business empire can offer value due to the strength of certain assets.
On a call with investors Thursday, Goldman Sachs trading executives expressed the firm’s view that Adani debt had hit a floor in the short term and bonds of Adani Ports & Special Economic Zone Ltd. have become interesting at the current price due to the value of that company’s assets, people with knowledge of the matter said. Before Adani pulled a stock sale, JPMorgan credit analysts said in a note to clients that they saw value in debt of some Adani operating companies.
Adani securities have attracted attention from opportunistic investors amid a staggering equity rout and a debt slump that took some bonds to distressed levels. That’s led to interest from clients of the biggest Wall Street banks to understand the extent of crisis surrounding the Indian billionaire, who was targeted by short-seller Hindenburg Research before scrapping an equity sale for his flagship Adani Enterprises Ltd.
The Goldman Sachs traders touted Adani Ports’s debt as being well capitalized with cash on hand, while being liquid enough to trade. They also expected this entity to be able to refinance its bonds while having the prospect of attracting equity investors and selling assets, according to the people, who asked not to be named discussing private comments.
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