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☆ Foxconn-Vedanta JV split credit negative for UK conglomerate- CreditSights
▼ + stars: | 2023-07-13 | by ( ) www.reuters.com time to read: +2 min

[1/2] A man walks past the logo of Vedanta outside its headquarters in Mumbai, India January 31, 2018. REUTERS/Danish Siddiqui/File PhotoCHENNAI, July 13 (Reuters) - A decision by Taiwan's Foxconn (2317.TW) to withdraw from a $19.5 billion semiconductor joint venture with Vedanta (VDAN.NS) is a "credit negative" for the Indian conglomerate's UK parent Vedanta Resources, debt research firm CreditSights said on Thursday. CreditSights had previously expected a "minimal credit impact" on Vedanta Resources based on the old arrangement, as Volcan, Vedanta's holding entity was undertaking the semiconductor investments. CreditSights also expects further strain on credit metrics and free cash flows for both Vedanta Resources and India's Vedanta with Foxconn's exit also resulting in a loss of a partner to split manufacturing costs. CreditSights maintained its "buy" rating on Vedanta Resources' bonds saying its refinancing outlook for some debt maturities have improved, helped by $1.3 billion of fresh loan fundraisings.

Persons: Danish Siddiqui, Taiwan's Foxconn, CreditSights, Foxconn, Praveen, Nivedita Organizations: Vedanta, REUTERS, Danish, Indian conglomerate's, Vedanta Resources, JV, Fitch, Thomson Locations: Mumbai, India, CHENNAI, Volcan, Chennai

☆ Two Adani Group firms to raise up to $2.57 billion from the market
▼ + stars: | 2023-05-13 | by ( ) www.cnbc.com time to read: +1 min

Signage of Adani Group at company's gas station in Ahmedabad, India, on Wednesday, Feb. 1, 2023. Two Adani group companies including the Indian conglomerate's flagship firm announced plans on Saturday to raise up to $2.57 billion from the market, months after a short-seller report battered investor confidence and drove share prices down. India's Adani Transmission said its board approved a plan to raise up to 85 billion rupees ($1.0 billion) from the stock market. Adani Enterprise said in a filing to exchanges that its board had approved plans to raise up to 125 billion Indian rupees ($1.53 billion) through similar modes. A planned $2.5 billion share sale by Adani Enterprise fell through in the wake of the scathing short-seller report.

☆ Norway’s giant sovereign wealth fund says there’s money to be saved by identifying ‘rotten apples’
▼ + stars: | 2023-04-18 | by ( Sam Meredith | ) www.cnbc.com time to read: +1 min

Norges Bank Investment Management CEO Nicolai Tangen says it is becoming increasingly important to identify as many "rotten apples" as it can. Norway's gigantic sovereign wealth fund believes it is becoming increasingly important to identify as many "rotten apples" as possible, saying there is money to be saved by reducing risks to companies whose state of health is not all as it seems. "We think it's becoming more and more important to put resources into finding what I call the 'rotten apples.' The Jan. 24 report accused Adani Group companies of "brazen stock manipulation and accounting fraud" — allegations that the conglomerate has denied. We'll never be able to spot all of the 'rotten apples', but we can try to find as many as we can."

☆ Beaten-up Adani stocks have now fallen below $100 billion in market value after coming under short-seller attack
▼ + stars: | 2023-02-21 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +3 min

The combined market value of Adani Group's companies fell below $100 billion on Tuesday, per Bloomberg. The 10 listed companies have wiped out over $136 billion in market cap since a short-seller's bombshell report. The Indian conglomerate's 10 listed companies — with businesses ranging from power, ports, transmission, gas, green energy, and food — now have a combined equity market value under $100 billion, Bloomberg reported. But Adani Power was up 5%, and Adani Ports edged 0.6% higher. The Adani Group has denied the claims repeatedly and dismissed the report as "misinformation and stale, baseless and discredited allegations."

☆ Indian market regulator to update finance ministry on Adani probe this week - sources
▼ + stars: | 2023-02-13 | by ( Jayshree Pyasi | ) www.reuters.com time to read: +1 min

MUMBAI, Feb 13 (Reuters) - India's market regulator will update the finance ministry this week on its investigation into the Adani Group's withdrawn $2.5 billion follow-on public issue, two sources familiar with the matter said on Monday. The SEBI board will brief the minister on surveillance measures taken by the regulator during the recent rout in Adani group stocks, the sources added. An update on investigations into offshore fund flows into Adani Group entities is also likely, the sources added. The regulator had undertaken a series of surveillance actions to ensure that the volatility in the Adani group companies' share prices was contained. This will be a part of the brief to the finance minister on Wednesday, the sources said.

☆ Indian market regulator to update finance minister on Adani probe this week, sources say
▼ + stars: | 2023-02-13 | by ( ) www.cnbc.com time to read: +1 min

India's market regulator will provide an update on its investigations into the Adani Group's withdrawn follow-on public issue this week, two sources familiar with the matter said on Monday. The board of the Securities and Exchange Board of India (SEBI) is scheduled to meet Finance Minister Nirmala Sitharaman on Feb. 15, the sources said, speaking on condition of anonymity as they are not allowed to speak to the media. SEBI's board will brief the finance minister on surveillance measures taken by the regulator during the recent rout in Adani group stocks, the sources said. The Indian conglomerate's listed entities have lost more than $100 billion in market value since a scathing report by a U.S. short seller in late January. An update on investigations into offshore fund flows into Adani Group entities is also likely, the sources added.

☆ Adani group firms pledge shares for lenders of flagship company – SBICAP Trustee
▼ + stars: | 2023-02-11 | by ( ) www.reuters.com time to read: +2 min

Feb 11 (Reuters) - Three Adani group companies have pledged shares for lenders to the Indian conglomerate's flagship Adani Enterprises (ADEL.NS), which pulled a $2.5 billion share sale during a recent market rout, the debt trustee firm said. Adani Ports and Special Economic Zone (APSE.NS), Adani Transmission Ltd (ADAI.NS) and Adani Green Energy Ltd (ADNA.NS) pledged shares to SBICAP Trustee Co, the firm said in Friday filings to the Bombay Stock Exchange. SBICAP Trustee said it had received the pledges in its capacity as "security trustee" of the lenders of Adani Enterprises. Fitch estimates that loans to all Adani group entities account for 0.8% to 1.2% of total lending by Indian banks rated by the agency. The Adani exposure of Indian banks is not enough to affect their credit profiles, two global rating agencies have said.

"Depending on the outcome of the MSCI review, we could see more pressure on select Adani group stocks." "MSCI has determined that the characteristics of certain investors have sufficient uncertainty that they should no longer be designated as free float ... This determination has triggered a free float review of the Adani Group securities," it added. Adani group did not respond to a Reuters request for comment. Adani Transmission (ADAI.NS), Adani Total Gas (ADAG.NS) and Adani Power (ADAN.NS) were each down 5%, while Adani Ports and Special Economic Zone (APSE.NS) were down nearly 2.9%.

☆ MSCI to announce changes to free float status of some Adani securities
▼ + stars: | 2023-02-09 | by ( ) www.cnbc.com time to read: +1 min

Index provider MSCI said on Thursday it had determined that some Adani securities should no longer be designated as free float after market participants raised concerns about the eligibility of the Indian conglomerate's companies for some of its indexes. Changes for Adani securities associated with its MSCI Global Investable Market Indexes are due to be announced on Thursday as part of its regular review for February, it added. The Adani Group has denied the allegations, saying the short seller's narrative of stock manipulation has "no basis" and stems from an ignorance of Indian law. MSCI defines the free float of a security as the proportion of shares outstanding that is considered available for purchase in public equity markets by international investor. Adani Group did not immediately respond to a Reuters request for comment.

☆ Morning Bid: Corporate scatter
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +5 min

A look at the day ahead in U.S. and global markets from Mike Dolan. A hail of mega corporate updates distracted stock markets from a confusing macro picture - but offers little more clarity with scattergun fortunes and ambiguous readouts for the wider economy. The flub fed worries that the Google parent is losing ground to rival Microsoft (MSFT.O) in the renewed craze around artificial intelligence. European shares touched a fresh nine-month high on Thursday as Germany's Siemens and UK's AstraZeneca boosted earnings euphoria, while Britain's bank, commodity and pharma heavy FTSE100 hit another record high. Norway's $1.35 trillion sovereign wealth fund said it had recently divested virtually all its remaining shares in the Adani group.

☆ India's Adani still eligible to be part of influential JPMorgan bond indexes
▼ + stars: | 2023-02-07 | by ( ) www.reuters.com time to read: +2 min

SINGAPORE, Feb 7 (Reuters) - India's Adani group of companies, which in recent weeks has seen a brutal selloff in its bonds and shares after being targetted by a U.S. short-seller, is still eligible for inclusion in JPMorgan's influential bond indexes, the bank said in a note. Adani, whose business interest includes ports, power generation and transmission, and renewable energy, has a total notional value of $7.7 billion in the JPMorgan's CEMBI and JACI indexes, the bank said on Monday. JPMorgan Corporate Emerging Market Bond Index series (CEMBI) tracks dollar debt issued by emerging market corporations, while its Asia Credit Index (JACI) tracks the total return performance of the Asia fixed-rate dollar bond market. After the release of Hindenburg's report, Adani's weight has decreased by 10 basis points to 36 basis points in the CEMBI Broad Div index and by 15 basis points to 48 basis points in the CEMBI Broad Div IG index, the JPMorgan note said. The Indian conglomerate's weight decreased by 16 basis points to 52 basis points in the JACI index, it added.

☆ India's Adani shares nosedive as investors fret about Hindenburg fallout
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +3 min

Hindenburg in its report said key listed Adani companies had "substantial debt" and that shares in seven Adani listed firms have an 85% downside due to what it called sky-high valuations. The Adani Group said the allegation of stock manipulation had "no basis" and stemmed from ignorance of Indian law. Its response stated that over the past decade, group companies have "consistently de-levered". In total, the seven listed Adani Group companies now have a market capitalisation of $99 billion, versus $218 billion before the Hindenberg report. The prices of U.S. dollar bonds issued by Adani Group entities edged higher on Friday after diving on Thursday.

☆ Adani made scheduled U.S. bond payments, to release credit report Friday
▼ + stars: | 2023-02-02 | by ( ) www.cnbc.com time to read: +3 min

Chairperson of Indian conglomerate Adani Group, Gautam Adani, speaks at the World Congress of Accountants in Mumbai on November 19, 2022. Adani Ports and Special Economic Zone Limited paid coupons, the two sources, speaking on condition of anonymity, said. Adani Group plans to issue a credit report by Friday which will address concerns raised by the Hindenburg report about its liquidity, the same source said. Brokerage CLSA estimated in a Jan. 26 report that consolidated debt of the top five Adani Group companies — Adani Enterprises , Adani Ports , Adani Power , Adani Green and Adani Transmission , with some element of double counting — stood at 2.1 trillion Indian rupees ($25.60 billion). The U.S. dollar-denominated bonds of Adani Ports and Special Economic Zone, Adani Transmission and Adani Electricity Mumbai were also trading lower.

☆ Legendary investor Mark Mobius said he shunned embattled Adani's share sale over debt concerns but he's still bullish on India
▼ + stars: | 2023-02-02 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Billionaire investor Mark Mobius said his firm avoided the share sale by Adani Enterprises that was later pulled. The Adani Group was accused of stock manipulation by short seller Hindenburg. Mobius said the problems surrounding Adani Enterprises and the Adani Group are specific to those entities. Adani Enterprises canceled a $2.5 billion share sale even after the offering was fully subscribed Tuesday with help from institutional investors. The short seller in response has stood its ground on the accusations.

Adani Ports and Special Economic Zone Limited paid coupons, the two sources, speaking on condition of anonymity, said. The source with knowledge of the firm's strategy said Adani Transmission also processed bond payments on Thursday. Adani Group plans to issue a credit report by Friday which will address concerns raised by the Hindenburg report about its liquidity, the same source said. Brokerage CLSA estimated in a Jan, 26 report that consolidated debt of the top five Adani Group companies -- Adani Enterprises, Adani Ports, Adani Power, Adani Green and Adani Transmission, with some element of double counting – stood at 2.1 trillion Indian rupees ($25.60 billion). The U.S. dollar-denominated bonds of Adani Ports and Special Economic Zone (APSE.NS), Adani Transmission (ADAI.NS) and Adani Electricity Mumbai were also trading lower.

Morgan Stanley economists forecast its stock market will be the world’s third largest before the end of 2030. For those who passively track stock market indexes, the controversy engulfing Adani, briefly the world’s third richest man, may act as a deterrent from an already expensive market. The newish chair of India’s securities regulator, Madhabi Puri Buch, has already wielded a stick at credit rating agencies to instil better market discipline. In the meantime, the turmoil is a reminder to investors of the danger of investing blindly in emerging markets. Stocks look increasingly expensive compared to emerging marketsReuters GraphicsFollow @ugalani and @ShritamaBose on TwitterloadingloadingCONTEXT NEWSShares of the Adani group companies have lost $65 billion since Jan. 25 after U.S. short-seller Hindenburg Research published a research note on the group.

Adani Transmission (ADAI.NS), Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS), Adani Power (ADAN.NS) and Adani Wilmar (ADAW.NS) fell between 5% and 20% on Monday. It stayed well below the offer price of the issue, which if successful will be largest such share offering ever in India. Adani Enterprises' $2.5 billion secondary share sale closed its second day amid weak investor sentiment. The stock closed at 2,892.85 rupees, 7% below the 3,112 rupees lower end of the offer price band. "While there is a risk that the share sale does not go through, it will be crucial today to wait and see how institutional investors participate."

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