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Tag: Adani

  • Adani stock fall: LIC, SBI ‘lost over Rs 78k cr’ in market cap, FM still on ‘mute mode’, says Cong

    Adani stock fall: LIC, SBI ‘lost over Rs 78k cr’ in market cap, FM still on ‘mute mode’, says Cong

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    New Delhi: The Congress Saturday questioned the “silence” of the Union finance minister and probe agencies after LIC and SBI “lost over Rs 78,000 crore” in market capitalisation of their shares due to exposure in Adani Group.

    LIC and SBI continue to invest in the Adani group even after the Hindenburg research report alleged share price manipulation and financial misappropriation by the group, Congress general secretary Randeep Surjewala claimed.

    “LIC is public money! Post Hindenburg Report, the value of LIC investment in Adani Group shares have fallen from Rs 77,000 Crore to Rs 53,000 crore — loss of Rs 23,500 crore.

    “Also, LIC shares have lost Rs 22,442 Crore. Why is LIC still investing Rs 300 crore in Adani Group,” Surjewala asked.

    The Congress leader claimed that after the publication of the report, the SBI share’s market cap has declined by a whopping Rs 54,618 crore.

    Also, the loan exposure of SBI and other banks to Adani Group is Rs 81,200 crore, he claimed.

    “The question is, why are SBI Employees Pension Fund and SBI Life still investing Rs 225 crore in Adani Group,” Surjewala asked.

    The Rajya Sabha MP also claimed that between January 24 and 27, the SBI and LIC lost a market cap of Rs 78,118 crore in value of their shares alone.

    “The loan exposure of SBI and Invest Value decline of LIC in Adani Group is in addition thereto. Yet… RBI, SEBI, ED, SFIO, CBI, and the FM remain on ‘mute’ mode,” Surjewala said in a series of tweets.

    The Congress leader has earlier said that elsewhere “the prime minister would be asked to explain, the finance minister would be sacked and a full investigation would have been ordered.”

    The Hindenburg Report has pointed to the alleged manipulation of stock price by the Adani Group and alleged financial irregularities. The Adani Group has denied the allegations and termed it a campaign to defame the company ahead of its follow on a public issue.



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    #Adani #stock #fall #LIC #SBI #lost #78k #market #cap #mute #mode #Cong

    ( With inputs from www.siasat.com )

  • Hindenburg report: KTR goes after BJP, asks who was aiding Adani group

    Hindenburg report: KTR goes after BJP, asks who was aiding Adani group

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    Hyderabad: BRS working president and Telangana IT minister KT Rama Rao on Saturday went after the BJP-led Centre and said that there are serious questions that need to be answered by the ‘NPA’ govt on findings of the Hindenburg Report.

    “There are serious questions that need to be answered by the NPA Govt on #HindenburgReport Why do LIC & SBI have such large exposure ₹77,000 Cr & ₹80,000 Crore to Adani group stocks? Who pushed them to do so? Who was aiding & abetting them in this entire episode?” he asked on Twitter.

    Along with the Adani Group share pummelling on Friday, with the group losing Rs 3.37 lakh crore in aggregate market capitalisation in a single day, Life Insurance Corporation (LIC), the single largest non-promoter domestic shareholder in five of the largest Adani Group companies by market capitalisation, lost Rs 16,627 crore due to a drop in the value of its Adani Group holdings.

    Indeed, the value of LIC’s Adani Group assets fell from Rs 72,193 crore on Tuesday to Rs 55,565 crore on Friday, a 22% drop in only two days.

    Meanwhile, LIC’s share price declined 3.5 percent during the day on Friday, falling 5.3 percent in the prior two days.

    What is the Hindenburg report?

    Hindenburg Research, a well-known short seller in the United States, disclosed short positions in the Adani Group on Wednesday, accusing the conglomerate of the improperly wide use of businesses established in offshore tax havens and expressing worry about excessive debt levels.

    The revelation, which comes just days before Adani Enterprises’ (ADEL.NS) $2.5 billion share sale, sent Adani group businesses’ shares tumbling.

    It also said that seven Adani listed firms had an 85% downside on a fundamental basis because to what it dubbed ‘sky-high valuations’.

    The firm published an investigative document titled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History‘ and revealed findings of their two-year investigation presenting evidence that the Rs 17.8 trillion worth Adani group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.

    According to the report, Gautam Adani, the Adani Group’s founder, and chairman, has a net worth of about $120 billion, which he has increased by more than $100 billion in the last three years, primarily as a result of stock price growth in the group’s seven most important publicly traded companies, which have increased by an average of 819 percent during that time.

    KT Rama Rao had also challenged the central investigative agencies including the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), Income Tax Department (IT) and Securities and Exchange Board of India (SEBI) to probe into the Adani enterprise’s ‘scam’.

    The challenge comes hours after US’s Hindenburg Research’s investigative document, alleging fraud in Adani Group’s dealings, surfaced.

    KTR challenged the agencies to probe into the matter stating in a tweet “ED, CBI, IT & SEBI; Hain Dum probe Karne Ka👇??

    KTR further went on to criticise mainstream and national media remarking on their ‘inefficiency’ to manifest such matters.



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    #Hindenburg #report #KTR #BJP #asks #aiding #Adani #group

    ( With inputs from www.siasat.com )

  • Hindenburg fraud-type assertions are devoid of facts: Adani Group

    Hindenburg fraud-type assertions are devoid of facts: Adani Group

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    New Delhi: The Adani Group has said that accounting (or fraud-type assertions) “investigation” by Hindenburg Research are devoid of facts.

    Of Adani’s portfolio’s nine publicly listed entities, eight are audited by one of the Big 6.

    On leverage or over-leverage issue — 100 of our various companies are rated (these account for nearly 100 percent of our EBITDA), Adani Enterprises said in a stock exchange filing.

    On revenue or balance sheet being artificially inflated or managed — out of nine listed companies in Adani portfolio six are subject to specific sector regulatory review for revenue, costs, and capex, Adani Group said.

    In relation to governance, four of our large companies are in the top 7 percent of the peer group in Emerging markets or the sector of the world.

    On the LAS position do note that overall promoter leverage is less than 4 percent of promoter holding, the group said.

    Hindenburg asked 89 questions in total, the following Question by number: 1,2,3 5,6,7 19,20,21, 27,28,29 62,63,64 and 72,74,75,77,78,79 are in relation to Related party transactions, DRI (Directorate of Revenue Intelligence) and court cases.

    Twenty-one in total cannot be claimed to be the result of any investigation over a two-year period or any such assertion as they were disclosed in the public documents all the way back from 2015 onwards, the group said.

    The 21 questions are nothing but Adani Portfolio’s own public disclosure from as far back as 2015, the statement said.

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    #Hindenburg #fraudtype #assertions #devoid #facts #Adani #Group

    ( With inputs from www.siasat.com )

  • Sensex, Nifty go into a tailspin after ‘fraud’ report on Adani group

    Sensex, Nifty go into a tailspin after ‘fraud’ report on Adani group

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    Mumbai: Benchmark indices Sensex and Nifty plunged over 1 per cent to close at three-month lows on Friday due to selling in banking, financials, utilities and oil shares triggered by an unfavourable report on Adani group as well as FIIs taking a cautious stance ahead of the Union budget.

    Continuing its decline for a second session, the 30-share BSE benchmark tanked 874.16 points or 1.45 per cent, its biggest single day loss in more than a month, to settle at 59,330.90. This is the lowest closing level since October 21.

    During the day, Sensex plunged 1,230.36 points or 2.04 per cent to 58,974.70.

    The broader NSE Nifty fell 287.60 points or 1.61 per cent to end at a three-month low of 17,604.35, also marking its worst single-day fall since December 23, 2022.

    “Indian benchmark equity gauges Sensex and Nifty hit their over three month lows on Friday, dragged by massive selling mainly in Adani group and banking stocks. Adani shares were in the line of the fire following the Hindenburg report accusing the group of serious irregularities,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.

    Vinod Nair, Head of Research at Geojit Financial Services also said that the sharp slump in the Indian market was triggered by an unfavourable research report on Asia’s richest promoter group companies.

    “This is also affecting the banking stocks even though the results of the sector are optimistic due to high group lending, indicating potential risk. PSU banks are the most impacted compared to private banks owing to high exposure. The FIIs’ cautious stance ahead of the Union Budget and FOMC meetings also fuelled the collapse.”

    From the Sensex pack, SBI fell the most by 5.03 per cent. ICICI Bank by 4.41 per cent, IndusInd Bank by 3.43 per cent, Axis Bank by 2.07 per cent, Kotak Bank by 2.03 per cent, HDFC Bank by 1.96 per cent, Reliance by 1.9 per cent and HDFC by 1.87 per cent.

    Bucking the trend, auto stocks Tata Motors and Mahindra & Mahindra closed with gains. Tata Motors, which returned to profitability in the third quarter of FY23, rose the most by 6.34 per cent among Sensex shares. Mahindra & Mahindra advanced 0.71 per cent.

    ITC and UltraTech Cement were also among the winners.

    In the broader market, the BSE smallcap gauge tanked 1.89 per cent and midcap index fell by 1.29 per cent.

    Among sectoral indices, utilities tanked 7.34 per cent, power tumbled 6.79 per cent while oil & gas (5.75 per cent), energy (5.22 per cent), telecommunication (3.79 per cent), commodities (3.27 per cent), bankex (3.06 per cent) and financial services (2.48 per cent) also declined.

    FMCG, healthcare and auto ended in the green.

    Adani group stocks took a beating falling up to 20 per cent after the US-based investment research firm Hindenburg Research made damaging allegations.

    The group’s flagship Adani Enterprises, which launched the Rs 20,000 crore FPO on Friday, tanked 18.52 per cent. Adani Ports plunged 16 per cent, Adani Power by 5 per cent, Adani Green Energy by 19.99 per cent, and Adani Total Gas by 20 per cent.

    In two days, the Adani group firms have lost a whopping Rs 4,17,824.79 crore from their market valuation. The market valuation of Adani Total Gas plummeted Rs 1,04,580.93 crore while that of Adani Transmission by Rs 83,265.95 crore.

    Adani Enterprises market capitalisation fell by Rs 77,588.47 crore, Adani Green Energy lost Rs 67,962.91 crore and Adani Ports by Rs 35,048.25 crore.

    The market valuation of Ambuja Cements declined by Rs 23,311.47 crore, Adani Power by Rs 10,317.31 crore, ACC by Rs 8,490.8 crore and Adani Wilmar by Rs 7,258.7 crore.

    Elsewhere in Asia, equity markets in Seoul, Tokyo and Hong Kong ended in the green.

    European benchmarks were trading higher during mid-session deals. Markets in the US had ended higher on Thursday.

    Stock markets were closed on Thursday on account of Republic Day.

    International oil benchmark Brent crude climbed 1.35 per cent to USD 88.65 per barrel.

    Foreign Institutional Investors (FIIs) offloaded shares worth Rs 2,393.94 crore on Wednesday, according to exchange data.

    “Traders will now gear up for the next 2-big catalysts; interest-rate decision from the Federal Reserve to trickle in on February 1, and the Union Budget for 2023-24 to be presented on the same day,” said Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Ltd.

    (Except for the headline, this story has not been edited by Siasat staff and is published from a syndicated feed.)

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    #Sensex #Nifty #tailspin #fraud #report #Adani #group

    ( With inputs from www.siasat.com )

  • Adani loses spot on world’s top five billionaire list as net worth dips

    Adani loses spot on world’s top five billionaire list as net worth dips

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    India’s richest person Gautam Adani lost a spot on the list of the world’s top five billionaires after his net worth dipped by USD 20.1 billion today.

    On Friday, Adani group stocks continue to fall after Hindenburg Research said it fully stands by its report and believes any “legal action taken against us would be meritless”.

    “Regarding the company’s threats of legal action, to be clear, we would welcome it. We fully stand by our report and believe any legal action taken against us would be meritless,” said Hindenburg Research in a statement that was posted on its official Twitter handle.

    What did Hindenburg Research claim about the group?

    Hindenburg Research report accused firms owned by Gautam Adani of market manipulation and accounting fraud.

    Following the accusation, Adani Group said it is mulling legal options in the US and India against the investment research firm.

    Jatin Jalundhwala, Group Head – Legal, Adani Group, in a statement, said, “The maliciously mischievous, unresearched report published by Hindenburg Research on 24 January 2023 has adversely affected the Adani Group, our shareholders and investors.”

    “We (the Group) are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” Jalundhwala said.

    Net worth of Adani dipped by over 16 percent

    Gautam Adani on Friday become poorer by USD 20.1 billion after his net worth dipped by 16.88 percent. Apart from losing a spot in the top five billionaire list, he is no longer in the USD 100-billion club.

    After a dip in his net worth, he slipped from fourth to seventh spot on the list in a day. However, he continues to be the richest person in India.

    In the last two years, Adani’s net worth climbed from USD 8.9 billion in 2020 to USD 99.1 billion now.

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    #Adani #loses #spot #worlds #top #billionaire #list #net #worth #dips

    ( With inputs from www.siasat.com )

  • Adani evaluating remedial and punitive action against Hindenburg Research

    Adani evaluating remedial and punitive action against Hindenburg Research

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    New Delhi: The maliciously mischievous, unresearched report published by Hindenburg Research on January 24 has adversely affected the Adani Group, our shareholders and investors, the Adani Group said in a statement on Thursday.

    “The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens”, Jatin Jalundhwala, Group Head, Legal, Adani, said.

    “Clearly, the report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares,” he said.

    “We hold short positions in Adani Group Companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities”, Hindenburg Research had disclosed.

    “We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises. We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” the Adani Group said.

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    #Adani #evaluating #remedial #punitive #action #Hindenburg #Research

    ( With inputs from www.siasat.com )

  • ‘Malafide intention’: Adani Group on Hindenburg Research’s allegations of fraud

    ‘Malafide intention’: Adani Group on Hindenburg Research’s allegations of fraud

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    Soon after US’s Hindenburg Research investigative report accused Adani Group of the improper wide use of businesses established in offshore tax havens and expressed worry about excessive debt levels, the conglomerate released a statement terming the report as ‘malicious combinations of selective misinformation.’

    The statement was released by Adani Group’s Chief Financial Officer (CFO) Jugeshinder Singh who stated the allegations made are stale, baseless and discredited that have been tested and rejected by India’s highest courts.

    Pointing that the timings of the report are to undermine the Adani Group’s reputation, the statement read, “The report’s publication clearly betrays a brazen, malafide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming Follow-On-Public Offering from Adani Enterprises.”

    It further said that its investors are unperturbed by the report and have full faith and will not be influenced by “one-sided, motivated and unsubstantiated reports with vested interests.”

    The firm published an investigative document titled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History‘ and revealed findings of their two-year investigation presenting evidence that the Rs 17.8 trillion worth Adani group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.

    According to the report, Gautam Adani, the Adani Group’s founder and chairman, has a net worth of about $120 billion, which he has increased by more than $100 billion in the last three years, primarily as a result of stock price growth in the group’s seven most important publicly traded companies, which have increased by an average of 819 percent during that time.

    As a reaction to the announcement, the market capitalization of the seven Adani Group equities fell by 46,086 crore on Wednesday.

    On Wednesday, Adani Total Gas lost Rs 12,366 crore, followed by Adani Ports, which lost Rs 8,342 crore, and Adani Transmission, which lost Rs 8,039 crore.

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    #Malafide #intention #Adani #Group #Hindenburg #Researchs #allegations #fraud

    ( With inputs from www.siasat.com )

  • US’s Hindenburg Research alleges fraud in Adani group’s dealings

    US’s Hindenburg Research alleges fraud in Adani group’s dealings

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    Adani becomes India's second largest cement player

    Hindenburg Research disclosed short positions in the Adani Group on Wednesday, accusing the conglomerate of the improperly wide use of businesses established in offshore tax havens and expressing worry about excessive debt levels.

    The revelation, which comes just days before Adani Enterprises’ (ADEL.NS) $2.5 billion share sale, sent Adani group businesses’ shares tumbling.

    It also said that seven Adani listed firms had an 85% downside on a fundamental basis because to what it dubbed ‘sky-high valuations’.

    Hindenburg, a well-known U.S. short-seller, stated key listed firms in the group headed by billionaire Gautam Adani have ‘significant debt’ which had put the entire company on a ‘precarious financial footing’.

    The firm published an investigative document titled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History‘ and revealed findings of their two-year investigation presenting evidence that the Rs 17.8 trillion worth Adani group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.

    According to the report, Gautam Adani, the Adani Group’s founder and chairman, has a net worth of about $120 billion, which he has increased by more than $100 billion in the last three years, primarily as a result of stock price growth in the group’s seven most important publicly traded companies, which have increased by an average of 819 percent during that time.

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    #USs #Hindenburg #Research #alleges #fraud #Adani #groups #dealings

    ( With inputs from www.siasat.com )