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The Reserve Bank of India (RBI) has asked for details from banks on their exposure to the Adani Group, several reports said on Thursday.
The information being sought by the central bank includes details of collateral being employed to back loans and indirect exposure that banks may have.
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( With inputs from www.siasat.com )
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New Delhi: Adani Enterprises on Wednesday said it has decided to withdraw its fully subscribed Rs 20,000-crore follow-on public offer (FPO) and will return the proceeds to investors. The announcement came a day after the company’s FPO was subscribed fully on the last day of the offer on Tuesday. “The Board of Adani Enterprises Ltd., (AEL) decided not to go ahead with the fully subscribed FPO.
Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction,” the Adani group’s flagship company said in a statement. As many as 4.62 crore shares were sought as against an offer of 4.55 crore. Non-institutional investors put in bids for over three times the 96.16 lakh shares reserved for them, while the 1.28 crore shares reserved for qualified institutional buyers (QIBs) was almost fully subscribed, according to BSE data.
There was, however, muted response from retail investors and company employees.
Gautam Adani, Chairman, Adani Enterprises Ltd said, the subscription for the FPO closed successfully on Tuesday. Despite the volatility in the stock over the last week, your faith and belief in the Company, its business and its management has been extremely reassuring and humbling. Thank you”.
However, today the market has been unprecedented, and the company’s stock price has fluctuated over the course of the day. “Given these extraordinary circumstances, the company’s board felt that going ahead with the issue will not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO,” Adani said.
The company said that its working with its Book Running Lead Managers (BRLMs) to refund the proceeds received in escrow and to also release the amounts blocked in Investors bank accounts for subscription to this issue. The company also said that its balance sheet is very healthy with strong cash flow and secure assets, and has an “impeccable track record of servicing our debt”. “This decision will not have any impact on our existing operations and future plans. We will continue to focus on long term value creation and growth will be managed by internal accruals. Once the market stabilizes, we will review our capital market strategy,” the statement noted.
Shares of Adani Group firms slumped on Wednesday and have lost more than Rs 7 lakh crore of their combined market capitalisation in the last five trading sessions amid concerns over US-based short seller Hindenburg Research’s report.
The decline is about 38 per cent compared to the market valuation at the end of trading on January 24, the day when the report was released.
Adani Group stocks have taken a beating on the bourses after Hindenburg in the report made a litany of allegations, including fraudulent transactions and share price manipulation, at the Gautam Adani-led group. Adani group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements. It called the Hindenburg report baseless and has threatened to sue the tiny New York short seller.
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( With inputs from www.siasat.com )
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New Delhi: Shares of Adani Group firms slumped on Wednesday and have lost more than Rs 7 lakh crore of their combined market capitalisation in the last five trading sessions amid concerns over US-based short seller Hindenburg Research’s report.
The decline is about 38 percent compared to the market valuation at the end of trading on January 24, the day when the report was released.
Adani Group stocks have taken a beating on the bourses after Hindenburg in the report made a litany of allegations, including fraudulent transactions and share price manipulation, at the Gautam Adani-led group.
At the end of Wednesday’s trading session, all the group companies settled in negative territory with shares of three companies hit their lowest price band.
Shares of Adani Enterprises nosedived 28.45 percent to close at Rs 2,128.70 on the BSE despite the company’s Rs 20,000-crore share sale sailed through on the last day on Tuesday after non-retail investors bid in big volumes. There was, however, a muted response from retail investors and company employees.
The share sale opened on January 24.
The counter of Adani Ports and Special Economic Zone plunged 19.69 percent, Adani Total Gas slumped 10 percent, Adani Green Energy declined 5.78 percent, Adani Wilmar fell 4.99 percent, Adani Wilmar went down 4.99 percent, Adani Power dropped 4.98 percent and Adani Transmission (2.46 percent)
In addition, Ambuja Cements tanked 16.56 percent, while ACC dropped 6.34 percent and NDTV went down 4.98 percent.
The Adani group stocks (including Ambuja, ACC and NDTV) have lost more than Rs 7 lakh crore or about 38 percent of their combined market cap in the last five trading sessions, Manish Chowdhury, head of research at Stoxbox, said.
“With investors hoping for a breather following the successful closure of the Adani Enterprises FPO yesterday, it was another shocker when news emerged today that Credit Suisse has stopped accepting bonds of Adani group as collateral for margin loans to its private banking clients. With several questions being raised about the group, it looks prudent to stay away from these companies till the dust settles,” he added.
Equity benchmarks Sensex and Nifty ended on a mixed note after Finance Minister Nirmala Sitharaman raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade in Budget 2023-24.
The 30-share BSE benchmark Sensex climbed 158.18 points or 0.27 percent to settle at 59,708.08. In contrast, the broader NSE Nifty declined 45.85 points or 0.26 percent to end at 17,616.30.
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( With inputs from www.siasat.com )