Delhi, India: India's Adani group shares fell on Thursday after the conglomerate was forced to cancel a crucial $2.5 billion stock offer due to market turmoil. This brought Adani's market losses to more than $100 billion and raised concerns about the potential impact on the entire system. It has also had a significant impact on Gautam Adani's wealth, removing him from the top 10 richest people in the world. Gautam Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years but have rapidly dwindled as a result of a critical research report released on January 24 by a US-based short-seller, suffered a significant setback with the withdrawal of Adani Enterprises' share sale. The occurrences are an embarrassing turn for the billionaire, who has collaborated with prominent investors and international players in the global expansion of ports, mining, and cement businesses. Despite the offer being fully subscribed on Tuesday, Adani canceled the share sale late on Wednesday as a stock market decline fueled by Hindenburg's criticisms grew. Adani also lost his title as Asia's richest man as a result of the attack. Adani Enterprises, the flagship company of the group, lost 10% on Thursday after opening higher. Adani Power and Adani Wilmar each lost 5%, while Adani Ports and Special Economic Zone, Adani Total Gas, Adani Green Energy, and Adani Transmission each lost 10%. On shelved share sale, Adani's market losses rise to $100 billion Adani has fallen to 16th place on the Forbes list of the world's richest companies, down from third last week. "As we have previously observed, the selling may intensify in the afternoon session. According to Avinash Gorakshakar, head of research at Mumbai-based Profitmart Securities, "stocks will be in freefall unless Adani is able to regain the confidence of institutional investors." Concerns about the likelihood of a wider impact on India's financial system have been raised by Adani's plunging stock prices. Reuters was informed on Thursday by government and banking sources that the central bank of India has inquired about the specifics of the exposure of local banks to the Adani group of companies. In the fiscal year ending March 2022, CLSA estimates that Indian banks were exposed to approximately 40% of the 2 trillion rupees ($24.53 billion) worth of Adani group debt. read more According to a source, Citigroup's wealth unit made the decision on Thursday to reduce the loan-to-value ratio for credit against Adani securities to zero and stopped providing clients with margin loans against Adani group securities. Opposition lawmakers in New Delhi requested that the US short-seller's report be discussed in the Indian parliament by submitting notices. ANI, a partner of Reuters, reported that Congress party legislator Manish Tewari said he would demand an investigation by the Joint Parliamentary Committee. Adani VS Hindenburg Hindenburg's report from last week alleged the Adani group's stock manipulation and improper use of offshore tax havens. It also raised concerns regarding the valuations of seven listed Adani businesses and the high debt. The short-sellers' claim of stock manipulation has "no basis" and is based on an ignorance of Indian law, the Adani group has claimed. It added that the group has always disclosed all relevant regulatory information. The Adani group stated earlier this week that investors had their full support, but investor confidence has decreased in recent days. Adani was able to secure the share sale subscriptions on Tuesday despite the stock's market price being lower than the issue's offer price, despite the fact that shares fell following the Hindenburg report. However, stocks plunged once more on Wednesday. Adani said that he was canceling the share sale because the company's "stock price has fluctuated over the course of the day" in a late-night announcement on Wednesday. The board of directors of the company was of the opinion that proceeding with the issue would be immoral in light of these extraordinary circumstances." Adani stated in a video address early on Thursday that the "interest of my investors is paramount and everything is secondary." Therefore, we have withdrawn the share sale to protect investors from potential losses.
Delhi, India: India’s Adani group shares fell on Thursday after the conglomerate was forced to cancel a crucial $2.5 billion stock offer due to market turmoil. This brought Adani’s market losses to more than $100 billion and raised concerns about the potential impact on the entire system.
It has also had a significant impact on Gautam Adani’s wealth, removing him from the top 10 richest people in the world.
Gautam Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years but have rapidly dwindled as a result of a critical research report released on January 24 by a US-based short-seller, suffered a significant setback with the withdrawal of Adani Enterprises’ share sale.
The occurrences are an embarrassing turn for the billionaire, who has collaborated with prominent investors and international players in the global expansion of ports, mining, and cement businesses.
Despite the offer being fully subscribed on Tuesday, Adani canceled the share sale late on Wednesday as a stock market decline fueled by Hindenburg’s criticisms grew. Adani also lost his title as Asia’s richest man as a result of the attack.
Adani Enterprises, the flagship company of the group, lost 10% on Thursday after opening higher. Adani Power and Adani Wilmar each lost 5%, while Adani Ports and Special Economic Zone, Adani Total Gas, Adani Green Energy, and Adani Transmission each lost 10%.
On shelved share sale, Adani’s market losses rise to $100 billion Adani has fallen to 16th place on the Forbes list of the world’s richest companies, down from third last week.
“As we have previously observed, the selling may intensify in the afternoon session. According to Avinash Gorakshakar, head of research at Mumbai-based Profitmart Securities, “stocks will be in freefall unless Adani is able to regain the confidence of institutional investors.”
Concerns about the likelihood of a wider impact on India’s financial system have been raised by Adani’s plunging stock prices.
Reuters was informed on Thursday by government and banking sources that the central bank of India has inquired about the specifics of the exposure of local banks to the Adani group of companies. In the fiscal year ending March 2022, CLSA estimates that Indian banks were exposed to approximately 40% of the 2 trillion rupees ($24.53 billion) worth of Adani group debt. read more According to a source, Citigroup’s wealth unit made the decision on Thursday to reduce the loan-to-value ratio for credit against Adani securities to zero and stopped providing clients with margin loans against Adani group securities.
Opposition lawmakers in New Delhi requested that the US short-seller’s report be discussed in the Indian parliament by submitting notices. ANI, a partner of Reuters, reported that Congress party legislator Manish Tewari said he would demand an investigation by the Joint Parliamentary Committee.
Adani VS Hindenburg
Hindenburg’s report from last week alleged the Adani group’s stock manipulation and improper use of offshore tax havens. It also raised concerns regarding the valuations of seven listed Adani businesses and the high debt.
The short-sellers’ claim of stock manipulation has “no basis” and is based on an ignorance of Indian law, the Adani group has claimed. It added that the group has always disclosed all relevant regulatory information.
The Adani group stated earlier this week that investors had their full support, but investor confidence has decreased in recent days.
Adani was able to secure the share sale subscriptions on Tuesday despite the stock’s market price being lower than the issue’s offer price, despite the fact that shares fell following the Hindenburg report. However, stocks plunged once more on Wednesday.
Adani said that he was canceling the share sale because the company’s “stock price has fluctuated over the course of the day” in a late-night announcement on Wednesday. The board of directors of the company was of the opinion that proceeding with the issue would be immoral in light of these extraordinary circumstances.”
Adani stated in a video address early on Thursday that the “interest of my investors is paramount and everything is secondary.” Therefore, we have withdrawn the share sale to protect investors from potential losses.
