disorder of Al-Adani group deepened on Thursday as the Indian conglomerate market Losses amplified to more more than $100 billion, sparking concerns about its potential overall impact, a day after its flagship company abandoned Offering shares worth $2.5 billion.
Investors were dumping Adani shares for more It has been more than a week since the US-based Hindenburg Research was put up for short out A report claims a group of companies got involved in Fraud and inventory price processing. mineralogist group denied this.
pulling out of Adani projects share The sale represented a dramatic setback for Founder Gautam Adani, a school dropout turned billionaire whose fortunes skyrocketed rapidly in recent years but fell in just A week after Hindenburg was published critical research Report.
Billionair move to abort share The sale had an impact across the markets, politics And business. Opposition MPs called for Al-Adani’s shares to decline for Wider probe, middle bank I jumped into action to check on exposure of banks.
Meanwhile, Citigroup’s wealth unit stopped offering margin loans to its clients against Guarantees of Adani group.
Adani established partnerships with Foreigner giants Like the French and TotalEnergies attracted Investors such as Abu Dhabi International Holding Company, where he seeks to achieve a global extending from ports to power section.
in shock move late on Wed, call Adani off the share The sell-off intensified as a rout for shares sparked by Hindenburg’s criticism, even though they had fully subscribed the day before.
“Adani may have started a crisis of confidence in Indian shares It could be wider market Implications,” Ipek Ozkardashkaya said, senior market analyst at Swissquote Bank.
Adani projects shares down 27% on Thursday, to close at its lowest level since March 2022.
else group comp also lost more ground, with 10% losses in Total Adani Gas, Adani Green Energy, and Adani Transport, while the ports of Adani and the Special Economic Zone declined by about 7%.
Since the Hindenburg Report on Jan 24th group Almost lost companies half combined market the value. Adani Enterprises – Described as an incubator of Adani’s business – $26 billion lost in market Capitalization.
promise me also He is no longer the richest person in Asia, having slipped to 16th in Forbes rankings of The world’s richest people and with for him net worth nearly halved to $64.6 billion in week.
60-yearIt was the third on the list and behind Billionaires Elon Musk and Bernard Arnault.
His rival Mukesh Ambani of Reliance Industries is now the richest person in Asia.
The decline in Adani’s share and bond prices has raised concerns about the possibility of this happening of wider effect on India financial system.
Central India bank I asked the local banks for details of their exposure to the Adani group, government Banking sources told Reuters on Thursday.
CLSA estimates that Indian banks have been exposed to about 40% of $24.5 billion of Adani Group debt in Finance year Until March 2022.
Dollar bonds issued by entities of Adani Group extended losses on Thursday, with Notes of Adani Green Energy crashes to a record Little.
“We see market He loses confidence on how To measure the level of the bottom and although there will be a short bounce, we expect more Given basic downside risk more private Banks (likely) to cut or reduce Monica Hsiao, chief investment officer, said: of Triada Capital Trust Fund, headquartered in Hong Kong.
In New Delhi, opposition MPs have filed notices in Parliament calls for debate of Seller short report.
Congress party called for A joint parliamentary committee set up Or the investigation of the Supreme Court’s oversight, while some deputies chanted anti-aggressive slogans inside Parliament, and it was postponed. for Today.
Adani vs Hindenburg
promise me made collectibles worth $13.8 billion in 2022, Dealogic data showed, that highest ever and more from double Previous year.
The fundraiser was canceled critical for Adani, who said that use $1.33 billion to fund green hydrogen projects, airport facilities and green highways, and $508 million to repay. debt in some units.
The Hindenburg Report claimed it was inappropriate use of Offshore tax havens and stock manipulation by the Adani Group. He. She also Raised concerns about the rise debt and ratings of Seven companies are listed in Al-Adani.
Al-Adani’s group has denied the accusations, saying the allegations of Stock manipulation is “baseless” and arose out of ignorance of Indian law. She said it always was made the necessary regulatory Disclosures.
Adani managed to secure share Sell subscriptions on Tuesday though the stock market price I was below The issue is displayed price. Maybank Securities and the Abu Dhabi Investment Authority submitted an offer for anchor part of the issueinvestments that will now be repaid by Adani.
late on Wednesday, the group’s founder said it was pulling the sale due to the value of the company share price fall, adding him board I felt like moving on with It “would not be morally correct”.