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

[Pranaayam]

SMH.....

Veggie-for-brains idiots don't get that the world doesn't run on Indian business rules. Shame !

@Indos you predicted this whole chest-thumper claim by Indian Hindutvas months ago about their claim on India being the boom economy - Salute brother.

Cheatery, dhokeybaazi and lies, thy name is Indian business.

Even the highest level Indian businesspeople are fraudsters like this......Wow !

Why don't we issue a call for Global investors to all come invest in India now ?

Haha. Let's see if they take their money to Bangladesh then. Oh no wait, Bangladesh has a market capitalization of $40 billion (lol, and falling) and dumbos have audacity to cast aspersions on $3.5 trillion cap market.

 

[Paitoo]

I wouldn't suspect Adani winning a lot of airport and port development contracts as evidence of hanky panky. The bidding system is quite sophisticated and bids are sealed using digital signatures. From my own experience of being part of bids in other companies, I would say that the system cannot be manipulated. The big deal in these kinds of projects is not the bid itself, but what is known in the industry as financial closure - the ability to conclude funding for the project. It is here that one could say Adani's ability to raise capital is quite spectacular, given that large infra projects are not a very good collateral, and are worth anything only when completed to cost. Unlike say a plant and machinery loan where the individual assets can be seized and salvaged.

For those who are not aware, there is a precedent for GOI trying to diversify the execution risk. When GMR group won the bids to develop both Delhi and Mumbai airports, it was asked to choose one, because both couldn't be given to the same company. GMR chose to keep Delhi and GVK got Mumbai as the second highest bidder. Keeping this in mind, Adani being allowed to keep 8 airports does look surprising. They may complete all successfully but that will be a redemption in hindsight. The principle of risk diversification should have been applied ex-ante.

 

[brational]

Any update on disbursement of loan from IMF? Has Dar the Finance minster closed any deal with Allah on Pakistan's prosperity? Adani is able to strike a deal from Sri Krishna btw. The company will keep growing despite the hiccups which is not new in Business. Company will further leakproof the books if any after internal audit/scrutiny. For a lighter note - India will continue to grow with or without Adani.

People in Pakistan should worry about the situation in Pakistan. Seems Allah has omitted Competency, Logical thinking and hardwork from Pakistanis while creating Pakistan & added millions of inbreds, thieves and gernails.

Grass and Pakistanis are made for each other.
@Mods, Please do the honor now.

 

[Bilal9]

Two Adani Group stocks plunge to 52-week low, three companies hit lower circuit​

SECTIONS
Two Adani Grou ..

Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

 

[maithil]

Hehehe... Check shareholding patterns of Adani Group... Such attacks mean nothing.

 

[doorstar]

Two Adani Group stocks plunge to 52-week low, three companies hit lower circuit​

SECTIONS
Two Adani Grou ..

Read more at:
https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

why not read more here instead?

here you go:
Akash Podishetty

---

Adani Group stocks continued to remain under pressure for the third day, with two of the group companies plunging to fresh 52-week lows and another three hitting lower circuits.

The intense sell-off in the last three trading sessions wiped out over Rs 5 lakh crore in market value from Adani stocks. The panic struck after US-based whistleblower Hindenburg warned of high leverage and fraudulent practices in Adani Group companies.

Adani Transmission on Monday fell 20% to hit a fresh 52-week low and lower circuit at Rs 1,611.40. Another group company
Adani Green Energy too, fell 20% to touch a 52-week low and lower circuit.

Another two Adani group companies, Adani Wilmar and Adani Power, fell 5% each and hit lower circuits at their respective counters.

Hindenburg Research further alleged that the Adani Group was involved in “brazen stock manipulation and accounting fraud schemes over decades".

Adani Group in response issued a 413-page rebuttal, calling Hindenburg an "unethical short seller" who made windfall gains by doing calculated securities fraud. Adani had also called the claims a calculated attack on India, the independence, integrity, and quality of Indian institutions, and the growth story and ambition of India.

The Adani Group said that the timing of the report seems to be directed at sabotaging the Rs 20,000 crore FPO by
that ends on January 31.

Adani Enterprises is 1.35% higher in Monday's intra-day session on Monday. Despite the continuous pressure in the last two days, the company said it would change neither the price band nor the schedule for FPO.

Hindenburg Research on Monday said Adani Group's 413-page rebuttal to allegations related to accounting fraud and stock manipulation defies common sense.

"Adani failed to specifically answer 62 of our 88 questions. Of the questions it did answer, the group largely confirmed or attempted to sidestep our findings," Hindenburg said in reply to Adani's explanations, adding that these explanations simply defy common sense

 

[datafreak]

Adani owned companies are way over valued, needs to come down.

yes but I think Adani green is worth holdong on it. He has demonstrated that he is able to build silicon wafers for Solar Panels. I think that's a fundamental advantage he can use to compete against the chinese.

Dont just see on Adani, what would happen on Indian stock market for the next week as confident on Indian stock market will likely plunge over this issue.

The possible huge outflow of foreign investors in Indian Stock market will likely hurt Rupee as well for the next weeks to come

Foreign investors are not investing in India for Adani, they are investing because it has 1 Billion people with rising incomes who will be a big consumer market in the future.

 

[Bilal9]

Adani rout hits $71 billion as fight with Hindenburg intensifies​

Photo: Bloomberg

Photo: Bloomberg

Billionaire Gautam Adani's 413-page attempt to restore confidence in his business empire is falling flat with investors, as stock-market losses deepen and key dollar bonds fall to fresh lows.

Shares of most Adani Group firms slumped on Monday despite the Indian conglomerate's lengthy weekend rebuttal to allegations of fraud by short seller Hindenburg Research. The three-day selloff has now erased about $71 billion market value amid a share sale by Adani's flagship that was meant to underline the tycoon's ascension on the global stage.

While the Adani Group has portrayed Hindenburg's allegations as baseless and an attack against India itself, the saga is reviving longstanding investor concerns about the conglomerate's corporate governance. It also threatens to weaken broader confidence in India, until recently a top investment destination for Wall Street, and accelerate a nascent shift toward a reopening China.

"The risk-reward for Indian markets has just taken a turn for the worse," said Charu Chanana, a strategist at Saxo Capital Markets. "Foreign investor confidence has been dented and will take time to repair, so I would be rather cautious. India anyway started this year trading at a premium to other EMs, and the Adani saga has once again questioned whether that is justified."

The selloff is also fast eroding the wealth of Adani, Asia's richest man, after his stocks were some of the best performers last year not just in the local market, but also on the broader MSCI Asia Pacific Index.


Some Gains

While the broad selloff continued on Monday with Adani Total Gas Ltd. and Adani Transmission Ltd. down as much as 20% again, there were signs of a divide emerging among traders. Adani Enterprises Ltd., the flagship, as well as Ambuja Cements Ltd., rebounded following the ports-to-cement conglomerate's rebuttal of Hindenburg's fraud allegations.

Six of the 10 Adani group stocks traded lower as of 12:20 p.m. in Mumbai, with Adani Enterprises up 4% after an earlier jump of as much as 10%. Its shares remain below the floor price set for the follow-on equity sale. The company is seeking to raise 200 billion rupees ($2.5 billion).

"The market is likely to reward Adani group companies with relatively better visibility of earnings and solid fundamentals such as Adani Ports, Ambuja and ACC," according to Nitin Chanduka, an analyst at Bloomberg Intelligence. "Post the sharp correction, valuations have cooled off and could offer attractive opportunities for long-term investors."

Overall subscription for the share offer by Adani Enterprises, which closes on Tuesday, was at just 2% as of 12:06 p.m. in Mumbai on Monday. Retail investors had bid for 3% of the shares on offer for them, while the company's employees bid for 8% of the shares for their category. The non-institutional part that includes wealthy individuals had been taken up 1%. Institutional investors bid for 4,576 shares, a fraction of the 12.8 million on offer.

While investors in Indian public offerings typically wait until the last day of the sale to place bids, concerns have risen that Hindenburg's attack has soured sentiment.

There will be no change to the pricing of the additional share sale and it will proceed as per schedule, Adani Group CFO Jugeshinder Singh told news channel CNBC TV 18 in an interview.

Tit-for-Tat

A decline in the dollar bonds of the Adani Group companies quickened on Monday. Adani Ports & Special Economic Zone Ltd.'s 2027 note dropped 6.2 cents, Bloomberg-compiled data show.

At least four group notes including debt of Adani Electricity Mumbai Ltd. have fallen to distressed levels below 70 cents on the dollar that generally indicate mounting concern about creditworthiness.


India's Adani hits back at Hindenburg, insists made full disclosure

In its rebuttal published Sunday, Adani said that some 65 of the 88 questions have been addressed in the conglomerate's public disclosures, describing the short seller's conduct as "nothing short of a calculated securities fraud under applicable law." It reiterated it will "exercise our rights to pursue remedies to safeguard our stakeholders before all appropriate authorities."

In the latest twist, Hindenburg then said Adani's rebuttal ignored all its key allegations and was "obfuscated by nationalism." The conglomerate's statement failed to specifically answer 62 of Hindenburg's 88 questions, the short seller said Monday, and conflated the company's "meteoric rise" and the wealth of Asia's richest man "with the success of India itself."

"About 70% of rebuttals are from prospectus disclosures, so nothing new to learn from it," said Deven Choksey, managing director at KRChoksey Holdings. Still, "Hindenburg must prove their allegations by testing them under Indian laws."

 

[brational]

A kangladeshi is having sleepless nights due to Adani. Seems he is more interested in Adani than the 3rd Largest Electronis company Baalton.

Without Indian doles, Kanglus were supposed to take Katora in hand and sit with the Momin brothers from the far West.

 

[Hecig]

history will prove this one. The Stanfords, Rockfellers were no angels. but they evolved with time. it remains to be seen where Adani ends
personally most of the defenders know better but they cannot admit the truth

LOL. "Admit the truth" ? what "Truth" ?

I have asked you to provide proof of you claims and all you could do was claim "history will judge"

Meanwhile in the real world, THIS happens.

Adani Gets Backing as UAE Royals Buy $400 Million in Share Sale​

And here is the 413 pages, Adani's reponse to Hindenburg report.

Adobe Acrobat

acrobat.adobe.com

 

[Hecig]

Not Gen. Musharraf due the fact that the fat chor pandit nawaz and false messiah khan conspired and colluded to hang him for removing fat chor and killing terrorists during amreeky war on terror in afghaistan

WOW, you casually used the Hindu title "Pandit" (learned man) as a Slur against a muslim ex PM.

The hate and bigotry even in British pakistani Muslims is unbelievable.

no wonder you lot are where you are.

 

[doorstar]

WOW, you casually used the Hindu title "Pandit" (learned man) as a Slur against a muslim ex PM.

The hate and bigotry even in British pakistani Muslims is unbelievable.

no wonder you lot are where you are.

no genius he is actually for real a kashmiri brahman pandit with a muslim name.

all mian and khwaja are ex kashmiri brahman/pandit converts, some are even sayyad now

 

[Hecig]

I wouldn't suspect Adani winning a lot of airport and port development contracts as evidence of hanky panky. The bidding system is quite sophisticated and bids are sealed using digital signatures. From my own experience of being part of bids in other companies, I would say that the system cannot be manipulated. The big deal in these kinds of projects is not the bid itself, but what is known in the industry as financial closure - the ability to conclude funding for the project. It is here that one could say Adani's ability to raise capital is quite spectacular, given that large infra projects are not a very good collateral, and are worth anything only when completed to cost. Unlike say a plant and machinery loan where the individual assets can be seized and salvaged.

For those who are not aware, there is a precedent for GOI trying to diversify the execution risk. When GMR group won the bids to develop both Delhi and Mumbai airports, it was asked to choose one, because both couldn't be given to the same company. GMR chose to keep Delhi and GVK got Mumbai as the second highest bidder. Keeping this in mind, Adani being allowed to keep 8 airports does look surprising. They may complete all successfully but that will be a redemption in hindsight. The principle of risk diversification should have been applied ex-ante.

A comparison of traffic in the last financial year shows that GMR's airports or cities handle 34.13 percent of international traffic and 29.27 percent of domestic traffic, whereas the Adani group's airports have handled 32.86 percent of international traffic and 25.55 percent of domestic traffic.

GVK is out of the game, having sold its stake in Bengaluru International Airport Limited to Fairfax and cashed out of the Mumbai airport and the Navi Mumbai one to Adani Airports.

no genius he is actually for real a kashmiri brahman pandit with a muslim name

LOL at your bigotry in calling a pakistani muslim as a kashmiri brahmin pandit.

Only a Hindu can be a Brahmin and only a learned Brahmin can be a Pandit.

 

[-=virus=-]

WOW, you casually used the Hindu title "Pandit" (learned man) as a Slur against a muslim ex PM.

Kashmiri (now) muslim (but formerly) Dharmi/Pandit is a thing.. they keep their old name. Been a few insurgents/rebels with that name over the years too

--------------

Kashmir's disturbing new reality | the young militants of Kashmir

A new breed of militants is rising in Kashmir -- young, educated, tech-savvy.

www.hindustantimes.com

I know some 'pandit' muslims from there too, friends of mine.

 

[Hecig]

Kashmiri (now) muslim (but formerly) Dharmi/Pandit is a thing.. they keep their old name. Been a few insurgents/rebels with that name over the years too

--------------

Kashmir's disturbing new reality | the young militants of Kashmir

A new breed of militants is rising in Kashmir -- young, educated, tech-savvy.

www.hindustantimes.com

I know some 'pandit' muslims from there too, friends of mine.

But NS does not call himself a brahmin or a pandit, does he ?