Adani Group stocks slumped to erase over 523 billion rupees ($6.4 billion) in market value on Tuesday, the biggest decline since early February, on renewed concerns over the ports-to-power conglomerate’s ability to repay its debt.

Adani Ports and Special Economic Zone Ltd fell more than 9 per cent, dipping below the price GQG Partners paid to buy a stake earlier this month. The group is seeking to renegotiate the terms of $4 billion worth of loans, the Economic Times reported, citing people it didn’t identify. 

The report revives concerns about the indebted group’s access to funds, which were brought to the fore following allegations of fraud by US short seller Hindenburg Research in February. Gautam Adani had sought to reassure investors with roadshows, selling stock in four companies to GQG partners, loan repayments and plans to cut spending.

‘A fairly limited risk’

“There will always be risk when one goes bottom fishing,” Arun Kejriwal, founder of Kejriwal Research & Investment Services said, referring to investors who bought Adani stock recently. “The risk here is fairly limited because other than Adani Ports, the other three companies are trading above the level GQG Partners paid for.” 

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Adani couldn’t be reached immediately for comments. Economic Times said the group denied the report, which had said it was in talks over the terms of loans taken last August for the acquisition of its cement assets. 

The shares of companies including Adani Green Energy Ltd, Adani Power Ltd, and Adani Wilmar Ltd all fell by a 5 per cent daily limit. Cement assets ACC Ltd fell 3.4 per cent while Ambuja Cements Ltd dropped over 2 per cent. 

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