Adani Stock Wipeout Deepens to $104 Billion After Flagship Firm Pulls Share Sale

[Indos]

Adani Stock Wipeout Deepens to $104 Billion After Flagship Firm Pulls Share Sale​

• Dollar bonds plunged to distressed levels as debt risk grows
• Group’s stock wipeout has reached $104 billion so far

Adani Group has $34.7 million of coupon payments due this week on its dollar bonds, most of which are already at distressed levels.
Photographer: Dhiraj Singh/Bloomberg

By
Ishika Mookerjee and
Divya Balji
February 2, 2023 at 10:53 GMT+7

The stock rout in Gautam Adani’s group of companies intensified Thursday after a sharp selloff forced the Indian conglomerate’s flagship firm to pull a record domestic equity offering.

Adani Enterprises Ltd. tanked as much as 10% in early Mumbai trading, after the company said it abandoned a $2.4 billion follow-on share sale to insulate investors in the offering from potential losses. The other nine stocks in the group also fell.


Read more: Adani Abruptly Abandons $2.4 Billion Stock Sale as Crisis Mounts

The decision to pull the share offering marks a major setback for Adani, pushing the group’s dollar bonds to distressed levels as concerns intensify about its debt risk. The weeklong meltdown has wiped out $104 billion in market value for the group’s stocks, as the fallout from US short seller Hindenburg Research’s fraud allegations against the conglomerate widens.


Looking at valuations, “there could be more downside to the Adani group shares,” said Nitin Chanduka, an analyst at Bloomberg Intelligence. “Banks could take a knock in case foreign outflows intensify and there is a default on bonds but so far they haven’t missed interest payments.”

Adani Group has $34.7 million of coupon payments due this week on its dollar bonds, most of which are already at distressed levels.

Citigroup Inc.’s wealth arm has also joined Credit Suisse Group AG in stopping the acceptance of securities of Adani’s group of firms as collateral for margin loans as banks ramp up scrutiny of the Indian tycoon’s finances.

— With assistance by Abhishek Vishnoi, Matt Turner and Josyana Joshua

Adani Crisis Deepens as Stock Rout Hits $100 Billion, Bonds Sink

Gautam Adani’s businesses have lost $108 billion in a week, one of the biggest wipeouts in India’s history, after an explosive report by short-seller Hindenburg Research forced him to pull a stock sale at the 11th hour and led some lenders to reject his securities as collateral for client trades.

www.bloomberg.com

 

[Indos]

My previous thread several days ago

Sell-off in India's Adani deepens to $50 billion

 

[Hakikat ve Hikmet]

The Afgan narcotics worth 3b$ were found in a private port in Gujrat operated by the Adani Group after the fall of the NA thugs in Kabul. Looks like the narcotics flow to the Adanis has significantly slowed down.....

 

[doorstar]

On behalf of all bhakts, i just want to say that this is phake newz, Adani Stronk and India Shupapawa 2020.

this and that BBC documentry were just warning shots. all will be well again after the teli returns from having dinner with sleepy pedo who has invited him to Washington at the earliest.

it's not as if they just discovered that narrendra teli is a killer of his own people or that adani is a cheater.

 

[doorstar]

The Afgan narcotics worth 3b$ were found in a private port in Gujrat operated by the Adani Group after the fall of the NA thugs in Kabul. Looks like the narcotics flow to the Adanis has significantly slowed down.....

hushed up or slowed down?

I was gonna post that some new idiotically honest customs official discovered a huge load of narcotics at an adani-run facility then suddenly all went quiet

 

[datafreak]

EVeryone knows that Adani has grown because of jhol. If there are fanboys here who think Adani being in trouble will bring Indian economy down....keep dreaming, Indian economy will just keep mving and like Satyam before will consider it a long term corrective.

 

[datafreak]

Fall of Adani will be actually amazing news for Indian economy, there will be short term pain, but in the long run, it will provide a level playing field with lots of competition and jobs, right now its just Adani Ambani in every field and no jobs, thats a recipe for disaster, you are looking at Russia type oligarchy.

Yeah while I hope he gets bigly compromised but realistically I don't think he will be fully destroyed. Underneath all that schmoozing to get funds and valuation he really has got some strong business strengths. His ports, for isntance, have great logistics and are highly efficient in clearing goods. Any company that is opening manufacturing facilities in India prefer him over the old, slow and corrupt state owned ports. Adani green has shown real capability in building solar panels not just as assembly but down to silicon wafers.

I hope this episode puts chains on his bull$hit and makes him comply more but I do think that he will not be destroyed.

 

[Hecig]

EVeryone knows that Adani has grown because of jhol. If there are fanboys here who think Adani being in trouble will bring Indian economy down....keep dreaming, Indian economy will just keep mving and like Satyam before will consider it a long term corrective.

Adani in "trouble" is bit of a stretch. This is just a Bump and they will recover and move on.

Notice, their FPO was FULLY SUBSRIBED, it was Adani who pulled the FPO because they wanted to protect their potential shareholders from even possible short term loss.

This kind of ethical behavior will have long term benefit. This storm in a tea cup will blow over in a week or two then it will be business as usual again.

I suspect Adani group have themselves set up a short selling position using their offshore shell companies. When the stock reach bottom, they will reinvest it back with their profits.

 

[doorstar]

Yeah while I hope he gets bigly compromised but realistically I don't think he will be fully destroyed. Underneath all that schmoozing to get funds and valuation he really has got some strong business strengths. His ports, for instance, have great logistics and are highly efficient in clearing goods. Any company that is opening manufacturing facilities in India prefer him over the old, slow and corrupt state owned ports. Adani green has shown real capability in building solar panels not just as assembly but down to silicon wafers.

I hope this episode puts chains on his bull$hit and makes him comply more but I do think that he will not be destroyed.

things are starting to turn around for him already. he'll soon be running ports in Israel too. which is not really possible without a nod from amreeki state

 

[SQ8]

Icarus flew too close to the sun

 

[Indos]

Gautam Adani defends ‘robust’ business as stock losses reach $100bn

Indian conglomerate says proceeding with cancelled $2.4bn share sale would ‘not be morally correct’

www.ft.com

 

[doorstar]

I suspect Adani group have themselves set up a short selling position using their offshore shell companies. When the stock reach bottom, they will reinvest it back with their profits.

nahtanbob does this here sound like more fraud or is it normal practice?

 

[Sharma Ji]

what amazing profits for shortsellers !

I need to get back into dabbling a bit in this shite too

 

[Vapnope]

On behalf of all bhakts, i just want to say that this is phake newz, Adani Stronk and India Shupapawa 2020.

Thank you my man. This is exactly what happened in the following comments

 

[Indos]

INDIA RUPEE-Rupee inches up as risk assets rally, gains capped by weak equities​

Credit: REUTERS/THOMAS WHITE
By Anushka Trivedi

MUMBAI, Feb 2 (Reuters) - The Indian rupee edged higher on Thursday, as risk assets jumped after the U.S. Federal Reserve meeting, but gains in the local currency were capped as equities remained jittery.

The rupee INR=IN was at 81.7625 per U.S. dollar by 10:27 a.m. IST, compared to its previous close of 81.92.

The rupee came under pressure this week, as it weakened past the 82-per-dollar levels in the past two sessions. It didn't even manage to sustain post-budget gains on Wednesday, mirroring the volatility in equities owing to an Adani-led selloff.

In local markets on Thursday, a decline in Adani Group shares after the conglomerate shelved a $2.5 billion secondary share sale dominated the mood yet again. Indian equities .NSEI were tepid and traders cited worries about more foreign investor outflows.

On the view front, outflows by foreign institutional investors are a negative for the rupee, whereas the weakness in the dollar to a multi-month low is a positive, said Amit Pabari, managing director at CR Forex.

"Broadly, the pair can be seen trading in a wide range of 81.50 to 81.90. Either side breakout will result in a 20-40 paisa move."

Foreign institutional investors withdrew around $3.5 billion from stock markets in January alone.

Meanwhile, Asian currencies and stocks were buoyed by Fed Chair Jerome Powell acknowledging that U.S. inflation had started to cool after the central bank raised rates by an expected 25 basis points.

However, he did signal that interest rates would rise further and that cuts were not in the offing, but markets continued to cheer the likelihood of the Fed rate peaking soon, with the dollar index USD= plunging more than 1% overnight.

(Reporting by Anushka Trivedi; Editing by Janane Venkatraman)

https://www.nasdaq.com/articles/india-rupee-rupee-inches-up-as-risk-assets-rally-gains-capped-by-weak-equities