Monday, April 22, 2024

Adani’s market losses top Rs 8 lakh crore as crisis shockwaves spread

Adani’s market losses swelled above Rs eight lakh crore ($100 billion) on Thursday, sparking worries about a potential systemic impact a day after the Adani Group’s flagship firm abandoned its $2.5 billion stock offering, reported Reuters.

Global index S&P Dow Jones Indices on Thursday said that it would remove shares of Adani Enterprises from widely used sustainability indices, effective February 7, which would make the shares less appealing to sustainability-minded funds, according to Live Mint.

India’s National Stock Exchange said it has placed on additional surveillance shares of Adani Enterprises, Adani Ports and Ambuja Cements.

NSE has also put two Adani Group stocks Adani Ports and Special Economic Zone Limited and Ambuja Cements under futures and options (F&O) ban on Friday.

On 24 January 2023, Hindenburg Research disclosed a short position against Adani Group’s listed companies and published a report that accuses the Indian conglomerate of engaging in “brazen stock manipulation and accounting fraud scheme over the course of decades.”

The Adani Group issues a 413-page rebuttal against Hindenburg Research’s report and calls the short seller’s actions “a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India.”

In its retort, Hindenburg accuses the Adani Group of draping itself in the Indian flag “while systematically looting the nation.”

Adani loses the title of Asia’s richest person to compatriot Mukesh Ambani, and slides down to No. 22 on the list of the world’s richest people with an estimated net worth of $57 billion.

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