Gautam Adani Networth: Adani group lost $ 108 billion in a week, read full report here
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Gautam Adani Networth: Indian billionaire Gautam Adani is facing the worst crisis of his corporate life after the Hindenburg Research report last week. In fact, Hindenburg released a report last week, in which he alleged that Gautam Adani had committed the biggest scam in corporate history. He accused Adani Group of stock manipulation, accounting fraud and other things. Due to this report, there was an outcry in the Indian stock market. It is being told that since the arrival of the report, Adani Group has lost $ 108 billion in market value.
Worst nightmare for Adani Group
Adani group companies have lost almost half their combined market value since the Hindenburg report came out on 24 January. Adani Enterprises has lost $26 billion in market capitalization. Shares of Adani Enterprises fell 27 per cent on Thursday, closing at their lowest level since March 2022. Other group companies also lost further ground with Adani Total Gas losing 10 per cent. At the same time, Adani Green Energy and Adani Transmission, while Adani Ports and Special Economic Zone declined by about 7 percent.
Adani Group shares suffered loss
The turmoil has not only hurt Adani Group shares, but is also affecting banks that have given loans to companies. The State Bank of India has lost 11 percent since the Hindenburg report came out. According to data compiled by Bloomberg, foreign institutional investors pulled out a net $2 billion from India’s stock market from January 27 to January 31.
Wrong impression on investors!
Bloomberg quoted Jian Shi Courtesy, a fund manager at Zurich-based GAM Investments, as saying that Adani-related headlines are generating a high level of negative attention, which could reduce investor appetite for Indian stocks. He said, while we don’t see Adani pulling down the entire Indian stock market, we think it could underperform other Asian markets like Indo-China. Bloomberg also reported that Citigroup’s wealth unit has stopped accepting securities issued by Adani companies as collateral for margin loans due to a dramatic drop in prices following negative news surrounding the group’s financial health. Credit Suisse’s private banking arm also made a similar change for the bonds. Unit Chief Executive Officer Yoshiro Hamamoto told reporters in Tokyo on Thursday that Mizuho Financial Group Inc. The Securities Division has had previous dealings with Adani and is looking into the allegations being made against the group. Public documents show that Mizuho Securities managed the debt issuance by Adani companies.
Adani rejected the allegations
Here, Adani’s company has denied the claims. The billionaire himself said in a video speech on Thursday that the canceled equity offering will have no impact on operations, showing no signs of closing the sale. At the same time, on Thursday, the opposition parties agreed to jointly raise the issue of fraud allegations against the Adani Group in Parliament. But, have not yet agreed on the manner of investigation of the Gujarat-based corporate chief. A meeting of like-minded political parties convened by Congress president Mallikarjun Kharge reached a consensus on strongly raising the Adani issue in both houses and forcing the government to initiate a discussion on the motion of thanks on the President’s address.
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