At a time some of his group stocks are gaining again, there is another good news for Gautam Adani as some hedge funds and distressed debt specialists have reportedly bought bonds issued by the conglomerate.

A Bloomberg report said that Oaktree Capital Management, one of the world’s largest opportunistic debt firms, and Davidson Kempner Capital Management were among the funds that bought the debt in recent weeks.

Earlier, another media report said that several international special situation funds have bought the dollar-denominated bonds from the group and the value stands at $1 billion. These includes US hedge funds Baupost Group and Silver Point Capital.

The dollar-denominated bonds had come under severe pressure after Hindenburg Research came out with a damaging report last month. It led to some of the overseas banks not accepting bonds issued by the group as collateral against loans that are given against such instruments.

They included Credit Suisse, Standard Chartered, and the wealth unit of Citigroup. Last week, Goldman Sachs and JP Morgan told their clients that bonds from the group offers value on account of the strength of underlying assets.

Stocks end higher

Shares of most of the Adani Group companies ended higher on Wednesday, with the flagship company Adani Enterprises rallying nearly 23 per cent to Rs 2,163, also its upper price band on the BSE. It later ended at Rs 2,158.65 per share, up by 19.76 per cent.

The flagship company’s market valuation rose Rs 40,601.14 crore to Rs 2.46 lakh crore. Seven of the group companies ended in the positive territory while three settled in the red on Wednesday.

With inputs from PTI