By Ben Otto
Shares of Adani Group companies gained as much as 20% Tuesday, helped by fresh funding and a report that U.S. officials had brushed aside short-seller concerns about the Indian conglomerate.
Adani Enterprises, the flagship company of Indian billionaire Gautam Adani, gained 17% in its biggest one-day increase since May, while Adani Green Energy, Adani Energy Solutions and Adani Total Gas each gained 20%.
Adani Power and Adani Ports & Special Economic Zone added 16% and 15%, respectively.
The gains came after Adani Green said it had secured US$1.36 billion in financing from a consortium of international banks, offering signs that the group is regaining lender trust months after a critical report by U.S. shortseller Hindenburg Research sent shares into a tailspin.
The deal from banks including DBS, BNP Paribas, Standard Chartered and Societe Generale will help fund the development of a renewable energy complex in Gujarat, Adani Green said Tuesday.
Investor sentiment was also helped by a Bloomberg report that a U.S. agency had concluded the Hindenburg allegations weren't relevant when it decided to lend the group as much as $553 million to build a container terminal in Sri Lanka.
Write to Ben Otto at email@example.com
(END) Dow Jones Newswires