According to two sources, India’s market regulator will update the federal government on its probe into the postponed share sale by the Adani Group. This would put the watchdog in the spotlight during a week when the country’s highest court is also considering the country’s laws. The Indian conglomerate’s turmoil, started by a short-report seller last month, persisted on Monday as shares in its listed companies continued to decline.
The seven listed stocks of the group, which billionaire businessman Gautam Adani heads, have lost about $120 billion in market value since a report by American short-seller Hindenburg Research on January 24 accused it of improper use of offshore tax havens and stock manipulation, accusations the company has refuted. Lawmakers have sought a probe, there have been protests in parliament, specific Adani units have had their rating outlooks lowered, and the aftermath has placed doubt on the company’s capital-raising plans. Gautam Adani has also lost that distinction as the wealthiest person in Asia. You might be loved to read about A Sunspot Breaking Off And Generating A Vortex.
Adani Total Biggest Casualties Of Hindenburg Rout
According to previous reports from Reuters, the Securities and Exchange Board of India (SEBI) is looking into the group’s market meltdown, including trade patterns and any potential irregularities in the $2.5 billion share sale of Adani Enterprises (ADEL.NS), the group’s flagship company, that had to be cancelled due to the stock’s decline. According to sources who spoke anonymously because they were not authorised to talk to the media, the SEBI board would report officials from the finance ministry on its inquiry on February 15.
According to a Monday article by Bloomberg News, Adani has cut its revenue growth target and will reduce future capital investment. Without providing more details, a corporate representative told Reuters that the allegation was “baseless, speculative”. Adani Group has promised to independently evaluate the short-accusations sellers after the release of the Hindenburg report and has paid back some of its $25 billion in debt. Still, the destruction of its securities has persisted. “It will take at least three to six months for the effects of management’s efforts to reassure investors to start showing up in share prices. You can also read Master Sword In The Legend Of Zelda.
People are reacting to Adani Crisis, according to sources, Hindenburg report and has paid back some of its $25 billion in debt:
OPINION | "A nationalistic response that the world is simply jealous of India's success and that foreigners are trying to undermine the country's progress will not be enough," writes Ritesh Kumar Singh about the ongoing Adani crisis.
https://t.co/bEYTTyU1wf— Nikkei Asia (@NikkeiAsia) February 13, 2023
There has been severe price harm, “said Profitmart Securities’ head of research Avinash Gorakshakar. Concerns regarding the vulnerability of Indian and foreign lenders to the Adani group have also surfaced recently. The firm had disputed Hindenburg’s claims and cited its connections to foreign banks as evidence of its resilience. On Monday, the DBS Group of Singapore said that it has a S$1.3 billion ($976 million) exposure to companies owned by the Adani group, of which S$1 billion was used to finance the cement company. It said that its exposure to the group didn’t worry it.
About the cement firm Adani purchased from Holcim for $10.5 billion last year, Chief Executive Piyush Gupta said at an earnings briefing, “They’re stable, cash-generating companies, so we’re not concerned about the risk” (HOLN.S). DBS was one of several banks that offered to finance.
FAQs
What Is Adani?
Adani Group is an Indian multinational conglomerate headquartered in Ahmedabad. It was founded by Gautam Adani in 1988 as a commodity trading business, with the flagship company Adani Enterprises.
When Was Hindenburg Report On Adani?
Adani Group has published a 400-page rebuttal of the claims made in a January 24 report by Hindenburg, an American short seller. But that didn’t stop a brutal stock market meltdown that destroyed over 50% of the group’s value and wiped over $60 billion from Adani’s fortune.
Who Is Gautam Adani, And Why Is He Controversial?
He is the founder and chairman of the Adani Group, one of the largest business conglomerates in India. A native of Gujarat — the same state where India’s Prime Minister Narendra Modi is from — Adani, 60, is a college dropout.
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