(Bloomberg) -- Most Adani Group stocks rose again, extending their rebound from the rout sparked by US short-seller Hindenburg Research’s report, as the indebted Indian conglomerate takes steps to address investor concerns over leverage.

Seven of the group’s 10 stocks ended higher in Wednesday’s session, with flagship Adani Enterprises Ltd. rallying 20% after surging the most since 2020 the previous day. The stock has more than doubled from the low it hit during the recent selloff.

The meltdown that at one point erased $117 billion from the value of billionaire Gautam Adani’s companies has eased as the tycoon and his family pre-paid some borrowings and the ports unit pledged to improve its debt ratio. Adani Green Energy Ltd., India’s biggest renewables firm and one of the seven group companies to release results this week, insisted it’s won the backing of investors in recent days.

“De-leveraging is expected to be the group’s immediate focus for at least the next year or so,” said Abhay Agarwal, fund manager with Piper Serica Advisors Pvt. “Recent earnings commentary also supports this view. They may go slower on inorganic growth because big acquisitions will require fresh borrowing and lenders may not offer the same comfort as in the past.”

Net income at Ambuja Cements Ltd. beat estimates while that of Adani Ports & Special Economic Zone Ltd. missed forecasts. Adani Transmission Ltd. posted a 78% gain in third-quarter profit on Monday.

READ: Adani Wilmar 3Q Net Income 2.46B Rupees

“Adani Ports’ results are good in the context of the concerns that are there at the moment,” said Deven Choksey, managing director at KRChoksey Holdings. “Margins are a bit soft but revenue and outlook remain strong.”

Adani Ports climbed 8.3% on Wednesday. Adani Wilmar, Adani Power and Adani Transmission rallied about 5% each.

“It is a mix of short covering and fresh buying,” said Choksey. “Technically speaking, cash margins put in have arrested the free fall. Short selling has stopped.”

Dollar bonds issued by Adani Group companies also rallied on Wednesday, according to Bloomberg-compiled data. Adani Green Energy’s note maturing in September 2024 led the increase, up 5 cents to 78.6 cents as at 4:40 p.m. in Mumbai. The Adani Ports bond maturing in 2029 gained 2.2 cents to 78 cents on the dollar.

The slump in Adani Group assets has attracted buyers, with the likes of Oaktree Capital Management and Davidson Kempner Capital Management picking up debt related to the conglomerate in recent weeks, according to people familiar with the matter.

But investors are likely to stay vigilant to the risk of another rout as concerns persist over the group’s access to funding. The fallout has extended beyond India’s financial markets as protests have flared amid questions about Gautam Adani’s ties to Prime Minister Narendra Modi.

India’s banking system is stable, strong and resilient, Reserve Bank of India Governor Shaktikanta Das reiterated on Wednesday, replying to questions on the impact of the Adani Group’s rout at a policy rate briefing.

In its report issued last month, Hindenburg Research said the Adani group had inflated revenue and stock prices — accusations the conglomerate has repeatedly denied.

Market participants are also awaiting the outcome of MSCI Inc.’s quarterly review of its gauges on Feb. 9. The index provider said last month that it has sought feedback from market participants on Adani Group’s situation and is closely monitoring any information that would prevent the conglomerate’s securities from being eligible for its gauges.

“Assessment of regulatory agencies and re-balancing will be key to watch from here onward,” said Sameer Kalra, founder of Target Investing in Mumbai. “Value is yet to emerge, the bounce is coming after extreme falls. It will take more resolutions for Adani’s issues to sort out.”

--With assistance from Catherine Bosley.

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