Adani Group Losses Reach 8L Cr as Stocks Drop After Failed Share Sale

Adani Group Losses Reach 8L Cr as Stocks Drop After Failed Share Sale

Adani Group’s Stocks Plunge Amid Turbulent Market:

The Adani Group shares took a hit on Thursday as the company shelved its $2.5 billion share sale. This move follows a recent attack by US short-seller Hindenburg and has resulted in a cumulative market capitalization loss of $100 billion. The cancellation of Adani Enterprises’ share sale marks a setback for billionaire Gautam Adani, who previously rose to fame in recent years as the stock values of his businesses rose.

Adani Enterprises’ flagship firm saw a 10% drop in its stock value, with other group companies such as Adani Ports and Special Economic Zone, Adani Total Gas, Adani Green Energy, and Adani Transmission experiencing a similar decline. Adani Power and Adani Wilmar saw a 5% drop each.

These events come as a disappointment for the billionaire who had built partnerships with foreign companies in his global expansion of businesses, including ports, mining, and cement. Adani has now dropped from the third rank on Forbes’ list to become the world’s 16th richest person. In response, the central bank of India has asked local banks for details of their exposure to the Adani group of companies.

Despite Adani’s claims of having complete support from investors, investor confidence has been shaken in recent days. Citigroup’s wealth unit has stopped offering margin loans against securities of Adani Group, as per a source with direct knowledge. Hindenburg’s recent report raised concerns about the group’s use of offshore tax havens, stock manipulation, high debt, and the valuations of seven listed Adani companies. Adani has denied these allegations, stating that the short-seller’s allegations stem from ignorance of Indian law.

In a statement on Wednesday, Adani announced the withdrawal of the share sale due to “extraordinary circumstances” and fluctuations in the company’s stock price. The company’s board felt that proceeding with the issue would not be “morally correct.”

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