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☆ Adani Enterprises shares rise but other group stocks plunge after short-seller attack
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +1 min

NEW DELHI, Jan 30 (Reuters) - Shares in India's Adani Enterprises (ADEL.NS) rose as much as 9.5% on Monday but those of several other group companies plunged for the third straight day, extending their losses after a U.S. short-seller's report that criticised the group. The report led to a $48 billion wipe-out in seven listed companies of the Adani group last week. On Monday, Adani Enterprises was trading at 2,962 rupees in early trade, paring some of its initial gains, as its critical $2.5 billion secondary share sale entered its second day. That's below the price band for the share sale - Adani has set a floor price of 3,112 rupees per share and a cap of 3,276 rupees. Adani Transmission (ADAI.NS), Adani Total Gas (ADAG.NS) and Adani Green Energy (ADNA.NS) all fell more than 15% each.

☆ Why a tiny American firm is taking aim at an Indian conglomerate
▼ + stars: | 2023-01-30 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

New York CNN —Asia’s richest man is in the crosshairs of a research firm whose very name evokes panic. Gautam Adani is a 60-year-old tycoon who founded the Adani Group over 30 years ago, building it into India’s largest port operator, with businesses spanning infrastructure and energy production. Hindenburg said Adani Group shares are massively overvalued, and it has taken a short position (more on that in a minute) on them, meaning Hindenburg wins when Adani shares fall. What is Hindenburg Research? Hindenburg is a short-seller that specializes in forensic financial research, founded in 2017 by Nathan Anderson.

HONG KONG/MUMBAI, Jan 30 (Reuters Breakingviews) - Gautam Adani’s financing options are narrowing fast. That leaves it dependent on a safety net provided by Indian banks. Those concerns exploded after Hindenburg Research last week declared the Indian group was making extensive use of tax havens and “pulling the largest con in corporate history” – allegations Adani dismissed as “misinformation” and “stale, baseless and discredited”. Lending more to the group would protect the capital that banks already have at risk in projects under construction. Shares of Gautam Adani’s listed companies have lost a combined $48 billion in market capitalisation since Jan. 25.

☆ India's LIC has no plans currently to bid for more in Adani share sale- source
▼ + stars: | 2023-01-30 | by ( Nikunj Ohri | ) www.reuters.com time to read: +1 min

NEW DELHI, Jan 30 (Reuters) - India's state-backed Life Insurance Corp (LIC) (LIFI.NS) has no current plans to bid in the ongoing $2.5 billion secondary share sale of Adani Enterprises (ADEL.NS), a source with direct knowledge of the matter told Reuters on Monday. read moreLIC, the country's largest insurer, took 5% of Adani share offering's anchor portion of $736 million, but has no plans to bid for more in the ongoing book building process that closes Tuesday, the source said. Hit by weakened sentiment after the Hindenburg report, Adani Enterprises shares closed at 2,892.85 rupees ($35.51) on Monday, well below the offer price range of 3,112-3,276 rupees per share. LIC is taking a cautious approach and the board had only approved the anchor bid, the source said. LIC already holds a 4.23% stake in the flagship Adani firm, while its other exposures include a 9.14% stake in Adani Ports and 5.96% in Adani Total Gas.

☆ Most Adani shares continue bloodbath as Asia's richest man loses $28 billion in a month
▼ + stars: | 2023-01-30 | by ( Jihye Lee | ) www.cnbc.com time to read: +2 min

Gautam Adani, chairperson of Indian conglomerate Adani Group, at the World Congress of Accountants in Mumbai on Nov. 19, 2022. Founder Gautam Adani, the richest man in Asia and once second only to Elon Musk, fell out of the world's top five richest to rank seventh on the Bloomberg's Billionaire Index. Despite small gains seen in Adani Enterprises, other affiliates of the Adani Group continued to plunge. Adani Total Gas and Adani Transmission both dropped by the daily 20% limit, Adani Green Energy fell more than 19%, and Adani Power lost 5%. India's Nifty 50 Index traded 0.6% lower on Monday and hovered at the lowest since mid-October 2022.

☆ Morning Bid: Breathe in
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Tom WestbrookMarkets are holding their breath for a week where central banks may start to take divergent paths. read moreWall Street's "fear index" - the VIX volatility index - on Friday fell below 18.0 for the first time in over a year, and perhaps a little under the radar, U.S. bond market volatility is now its lowest since last June. In Asia, markets slipped slightly, U.S. futures fell 0.4% and currency trade was eerily calm. The Nikkei newspaper reported Renault (RENA.PA) was to lower its share holding in Nissan (7201.T) to 15%, while the latter would invest in Renault's EV business. Things have not gone well for investors in other firms Hindenburg has targeted.

☆ Indian shares volatile as key Adani stocks arrest slide
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Jan 30 (Reuters) - Indian shares were volatile in morning trading on Monday, mirroring financials, ahead of the Union budget, while select Adani Group stocks arrested the recent slide after a short-seller attack on group companies triggered a sell-off over the previous two sessions. The Nifty 50 index (.NSEI) was down 0.36% at 17,540.65 as of 11:03 a.m. IST, while the S&P BSE Sensex (.BSESN) fell 0.29% to 59,156.62. Indian equities had tumbled to a three-month low on Friday, dragged by a short-seller attack on Adani group companies, which triggered a selloff in banks. Investors will also shift focus to India's Union budget on Feb. 1, with the government's fiscal consolidation path and borrowing calendar for fiscal 2024 as triggers. Besides the Union budget, analysts also said rate decisions by global central banks and January automobile sales data would determine the mood in the market.

☆ Exclusive: India's LIC reviewing Adani response to short seller's allegation
▼ + stars: | 2023-01-30 | by ( Nikunj Ohri | ) www.reuters.com time to read: +2 min

[1/2] Life Insurance Corporation of India (LIC) logo is seen displayed in this illustration taken February 20, 2022. REUTERS/Dado Ruvic/Illustration/FilesNEW DELHI, Jan 30 (Reuters) - India's Life Insurance Corporation (LIC) (LIFI.NS) said on Monday it was reviewing the Adani Group's response to scathing criticism by a U.S. short-seller and would hold talks with the group's management within days. State-run LIC, the country's largest insurer, says it has invested 364.7 billion rupees ($4.47 billion) in Adani companies, about 1% of its assets under management. "Of course we are studying the 413-page reply given by Adani Group," Kumar said. ($1 = 81.6120 Indian rupees)Reporting by Nikunj Ohri Editing by David Goodman and Raju GopalakrishnanOur Standards: The Thomson Reuters Trust Principles.

☆ Here's why the housing market could see more action this year - and what it means for affordability
▼ + stars: | 2023-01-30 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Now — into the housing market we go. Nadia Evangelou, senior economist for the NAR, told me recently the housing market could turn around in 2023, but unaffordability would remain a prevailing theme. In other news:People sit outside the New York Stock Exchange (NYSE) in New York City, U.S., September 15, 2016. Elon Musk said he's worried about the Fed "crushing" the value of the entire stock market. The current uncertainty in the housing market can be paralyzing for investors, but there's still opportunities to make money, he explained.

☆ India to use emergency law to maximise coal power output -sources
▼ + stars: | 2023-01-30 | by ( Sarita Chaganti Singh | ) www.reuters.com time to read: +1 min

NEW DELHI, Jan 30 (Reuters) - India plans to use an emergency law next month to force power plants that run on imported coal to maximise output, two government sources told Reuters on Monday, in preparation for expected record consumption this summer. Federal power ministry officials will work with those involved in debt restructuring of financially stressed power plants to make them functional, the sources said. India expects its power plants to burn about 8% more coal in the financial year ending March 2024, with increased economic activity and erratic weather to continue boost growth in demand for power. India's industrial western states Maharashtra and Gujarat, which have registered a steep rise in power demand in recent months, demanded invocation of the law, the sources said. Writing by Sudarshan Varadhan Editing by Toby Chopra and David GoodmanOur Standards: The Thomson Reuters Trust Principles.

☆ Abu Dhabi's IHC plans to invest $381 mln in Adani Enterprises
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +2 min

DUBAI, Jan 30 (Reuters) - Abu Dhabi conglomerate International Holding Company (IHC.AD) on Monday said it would invest 1.4 billion dirhams ($381.17 million) in Adani Enterprises' (ADEL.NS) follow-on public offer. "Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises Ltd; we see a strong potential for growth from a long-term perspective and added value to our shareholders," IHC CEO Syed Basar Shueb said in a statement. IHC, Abu Dhabi's largest listed company, invested $2 billion in Adani Group companies last year, including Adani Enterprises. Adani Group has hit back at the report by Hindenburg Research published last week that flagged concerns about Adani Group's debt levels and the use of tax havens. Investors' response to Hindenburg's criticisms will be tested this week by Adani Enterprises' $2.5 billion follow-on share offering which closes on Tuesday.

The conglomerate led by Asia's richest man, the Indian billionaire Gautam Adani, said last week's Hindenburg report was intended to enable the U.S.-based short seller to book gains, without citing evidence. This has been overshadowed by the Hindenburg report, which flagged concerns about high debt levels and the use of tax havens. Hindenburg did not immediately respond to a request for comment on the Adani response on Sunday. The report also said five of seven key listed Adani companies have reported current ratios - a measure of liquid assets minus near-term liabilities - of below 1. It also said key listed Adani companies had "substantial debt" which has put the entire group on a "precarious financial footing" and that shares in seven Adani listed companies have an 85% downside on a fundamental basis due to what it called "sky-high valuations".

☆ Adani's $2.5 billion share sale faces crucial day after Indian rout
▼ + stars: | 2023-01-29 | by ( ) www.reuters.com time to read: +3 min

Adani Group has called the report baseless and said it was considering taking action against Hindenburg. 'FREE FALL'Some Adani Group stocks have surged more than 1,500% in the last three years amid aggressive expansion in businesses that include ports, power generation, airports and mining. Adani Enterprises has set a floor price of 3,112 rupees per share and a cap of 3,276 rupees for the secondary share sale - well above their close of 2,761.45 rupees on Friday. Arun Kejriwal, founder of Kejriwal Research & Investment, said investors were likely to wait until the last day of the share sale to see if the price band is tweaked. There are at least six Adani Group companies in the MSCI India Index, with a cumulative weight of 4.31%.

☆ Adani's $2.5 billion share sale faces crucial day after rout
▼ + stars: | 2023-01-29 | by ( ) www.reuters.com time to read: +3 min

Jan 30 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. It looks like a quiet start to the week in Asia on Monday, but don't be fooled - it may be the calm before the storm. The MSCI Asia ex-Japan index is at a nine-month high and up more than 30% from the October low. It has risen in 11 of the last 13 weeks and is on course for a monthly gain of 11%. China reopens after the Lunar New Year holiday, so trading volumes in Asia will return to something resembling normal.

☆ MSCI seeks feedback on Adani Group over Hindenburg report
▼ + stars: | 2023-01-28 | by ( ) www.reuters.com time to read: +1 min

Jan 28 (Reuters) - Index provider MSCI said on Saturday it was seeking feedback on Adani Group and associated securities and was aware of a report issued by short-seller Hindenburg Research. Adani Group did not immediately respond to Reuters request for comment. It has dismissed the Hindenburg report as baseless and said it was considering whether to take legal action against the New York-based firm. India's capital markets regulator was studying the Hindenburg report as it may help its own probe into offshore fund holdings of Adani Group, Reuters reported on Friday. Billionaire U.S. investor Bill Ackman on Thursday described the Hindenburg report "highly credible and extremely well researched".

Asked for comment, an Adani Group spokesperson said in an email that the share sale was going "as per schedule", without elaborating. The Adani Group has called the report baseless and said it was considering taking action against Hindenburg. Friday's 20% fall in shares of group flagship Adani Enterprises dragged it 11% below the minimum offer price of the secondary sale. Adani had set a floor price of 3,112 rupees ($38.22) a share and a cap of 3,276 rupees, but Adani Enterprises closed on Friday 2,761.45 rupees. A fourth source said Adani management is also discussing the share sale internally to decide on next steps.

[1/2] The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad, India, January 27, 2023. Adani Group in a statement said: "There is no change in either the schedule or the issue price." The Adani Group has called the report baseless and said it was considering taking action against Hindenburg. Friday's 20% fall in shares of group flagship Adani Enterprises dragged it 11% below the minimum offer price of the secondary sale. The Hindenburg report questioned how the Adani Group used entities in offshore tax havens such as Mauritius and the Caribbean islands.

☆ Selloff in Adani Group Stocks Wipes Out $47 Billion in Market Value
▼ + stars: | 2023-01-27 | by ( Weilun Soon | Shan Li | ) www.wsj.com time to read: 1 min

The Bombay Stock Exchange in Mumbai. The benchmark Nifty 50 index, which includes two Adani companies, fell to a three-month low Friday. Shares of several companies linked to India’s richest man, Gautam Adani , fell sharply Friday, losing tens of billions of dollars in market value after a U.S. short seller’s allegations of fraud at his sprawling conglomerate continued to unnerve investors. Five of the seven listed Adani Group companies ended the day 16% to 20% lower, and the other two fell by the maximum 5% permitted by India’s exchanges for their stocks. The market’s benchmark Nifty 50 index, which includes two Adani companies, fell to a three-month low.

The stunning market selloff has cast a shadow over Adani Enterprises' secondary share sale that started on Friday. The share sale is being managed by Jefferies, India's SBI Capital Markets, Axis Capital, and ICICI Securities among others. Shares of other listed Adani firms also plummeted, with Adani Transmission Ltd (ADAI.NS), Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS) and Adani Ports (APSE.NS) sinking 20% each. Adani Ports, Adani Green Energy and Adani Transmission marked their worst intraday drop ever, with heavy volumes. Billionaire U.S. investor Bill Ackman said on Thursday that he found the Hindenburg report "highly credible and extremely well researched."

☆ India's Adani dollar bonds hit lowest since November
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: 1 min

LONDON, Jan 27 (Reuters) - Dollar bonds issued by entities of India's Adani Group tumbled on Friday as a scathing report by a U.S. short seller triggered a rout in the conglomerate's listed firms. The short seller report has cast doubts on how investors will respond to the company's record $2.45 billion secondary sale. U.S. dollar-denominated bonds issued by Adani Green Energy (ADNA.NS) extended this week's sharp falls to just under 77 cents in the dollar to their lowest since November, Tradeweb data showed. The price was last down 7.32 cents to 77.007 cents. .International bonds issued by Adani Ports And Special Economic Zone (APSE.NS), Adani Transmission (ADAI.NS) and Adani Electricity Mumbai also fell. Reporting by Amanda Cooper and Dhara RanasingheOur Standards: The Thomson Reuters Trust Principles.

Adani Group has dismissed the report as baseless and said it is considering whether to take legal action against the New York-based firm. "There were heavy positions in Adani group (shares), the way they have risen in the last couple of years," said Neeraj Dewan, director at Quantum Securities in New Delhi. Shares of other listed Adani firms also plummetted, with Adani Transmission Ltd (ADAI.NS) Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS) and Adani Ports (APSE.NS) sinking 20% each. Adani Enterprises' net profit for the period ended Sept. 30, 2022 doubled to 9 billion Indian rupees ($110.31 million) while its total income nearly tripled to 795 billion Indian rupees, according to its share sale prospectus. The company's total liabilities as of September 2022 stood at 869 billion rupees ($10.64 billion), the prospectus showed.

☆ India banks' exposure to Adani Group is limited - CLSA, Jefferies
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +2 min

MUMBAI, Jan 27 (Reuters) - Indian banks' exposure to the Adani Group is within manageable limits, said brokerage houses CLSA and Jefferies, as the group fend off an attack from well-known short-seller Hindenburg Research. For public sector banks (PSU), the debt is at 0.7% of total loans and for private banks, it is at 0.3%. Indian banks have exposure to less than 40% of total group debt, the brokerage estimates. "Within this, private banks' exposure is below 10% of total group debt and most banks have indicated that they have largely financed assets with strong cash flows, such as airports/ports," CLSA said. While PSU banks have material exposure at 30% of group debt, this level has not increased in the past three years, CLSA said.

☆ India's Adani kicks off $2.45 bln share sale while under short-seller attack
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +2 min

Adani Group firms lost $11 billion in market capitalisation on Wednesday after New York-based Hindenburg Research flagged concerns in a report about debt levels and the use of tax havens. Adani Group dismissed the report as baseless. Adani Enterprises, the flagship company of a conglomerate led by world's fourth-richest man, Gautam Adani, aims to use the share sale proceeds for capital expenditure and to pay debt. Adani Group has repeatedly faced and dismissed concern about debt levels. The share sale "should sail through successfully."

☆ Bill Ackman says Hindenburg's report on Adani Group 'highly credible'
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +1 min

[1/2] The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave/File PhotoJan 26 (Reuters) - Billionaire investor William Ackman in a tweet on Thursday said that he found short-seller Hindenburg Research's report on Adani Group "highly credible and extremely well researched." Shares in seven listed group companies of Adani lost $10.73 billion in market capitalisation in India on Wednesday after Hindenburg released the report, which accused the conglomerate of improper use of offshore tax havens and also said it held short positions in the company through its U.S.-traded bonds and non-Indian-traded derivative instruments. "We are not invested long or short in any of the Adani companies... nor have we done our own independent research," Ackman said in a tweet. loadingReporting by Akriti Sharma in Bengaluru; Editing by Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

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