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☆ Citigroup wealth unit stops margin loans against India Adani's securities - source
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: +1 min

SINGAPORE, Feb 2 (Reuters) - Citigroup's (C.N) wealth unit has stopped extending margin loans to its clients against securities of India's embattled Adani group, a source with direct knowledge of the matter said, as the conglomerate reels from a short-seller attack. The group's flagship firm Adani Enterprises (ADEL.NS) called off its $2.5 billion share sale in a dramatic reversal on Wednesday as a rout sparked by the U.S. short-seller's criticisms wiped billions more off the value of the Indian tycoon's stocks. Citi's wealth unit decided to cut the loan-to-value ratio for credit against Adani securities to zero on Thursday, said the source, who declined to be named due to the sensitivity of the matter. Citi declined to comment. Reporting by Anshuman Daga; Editing by Sumeet Chatterjee and Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.

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.

☆ Gautam Adani in talks to prepay share pledges to boost confidence - Bloomberg News
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: +1 min

Feb 2 (Reuters) - Adani Group Chairman Gautam Adani is in talks with lenders to prepay and release pledged shares as he seeks to restore confidence in the financial health of his conglomerate, Bloomberg News reported on Thursday. The move would see lenders release some of the stock in Adani Group companies that was pledged as collateral, Bloomberg reported, citing a person with knowledge of the matter. The group hasn't faced margin calls on these pledges and is seeking the prepayment proactively, according to the report. The key priority is to remove any concern about margin calls and Adani officials will speak with investors in coming days and will make all payments on time, Bloomberg reported. A spokesperson for Adani Group did not immediately respond to a Reuters request for comment outside business hours.

☆ Citigroup's wealth arm stops margin loans on Adani securities - Bloomberg News
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: 1 min

Feb 1 (Reuters) - Citigroup Inc's (C.N) wealth arm has stopped accepting securities of billionaire Gautam Adani's group of firms as collateral for margin loans following short seller Hindenburg Research's report, Bloomberg News reported late Wednesday. Citigroup declined to comment on the report. Reporting by Rishabh Jaiswal in Bengaluru; Editing by Nivedita BhattacharjeeOur Standards: The Thomson Reuters Trust Principles.

☆ Adani stocks have now wiped out over $100 billion in market value as botched share sale piles on trouble
▼ + stars: | 2023-02-02 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

The Adani Group has lost more than $100 billion in market value as its stocks took a beating from the Hindenburg report. Shares in its flagship business, Adani Enterprises, shed more than 25% on Thursday. The volatility in Adani stocks forced founder Gautam Adani to pull a $2.5 billion share sale for Adani Enterprises on Wednesday. Shares in its flagship company Adani Enterprises plunged 26.7% Thursday, and are down almost 60% this year. Meanwhile, Adani's personal fortune has tumbled after the Hindenburg report.

☆ 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.

☆ Adani's market losses have now topped $100 billion in the week since being targeted by a short seller
▼ + stars: | 2023-02-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAdani's market losses have now topped $100 billion in the week since being targeted by a short sellerWall Street Journal reporter Weilun Soon discusses the continued losses in shares of the listed companies of India's Adani Group after it shelved a massive stock sale.

☆ 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.

Foreign investors, many of them already underweight what they consider an overpriced stock market, are reducing exposure. "Only Adani Group is trading with these ridiculously high multiples, and that is the core of the problem." "At this point in time, I don’t think it’s a systemic risk," said Jimmy Lim, chief investment officer at Modular Asset Management in Singapore. "We don't think that there's going to be a default anytime soon, although I don't expect any kind of near-term resolution between Adani Group and Hindenburg," Chao said. Yet Chao expects the selloff to help bring Indian stock valuations to more "palatable levels" for investors.

The Jan. 24 report has triggered an $86 billion erosion in market capitalisation of seven listed Adani Group companies. "To go through this exercise of a share sale and to call it off raises more questions." After the share sale was pulled, yields of dollar-denominated bonds issued by Adani companies rose on Wednesday. Adani Group was working with its bankers to refund the proceeds received by in the secondary share sale of Adani Enterprises. The share sale had succeeded on Tuesday even when the Adani Enterprises stock price in Mumbai markets traded below the offer price of the share sale.

Spokespeople for SEBI and Adani Group did not immediately respond to requests for comment. Among several allegations, Hindenburg accused Adani Group last week of using offshore tax havens and stock manipulation. On Tuesday, Adani Group mustered support from investors for a $2.5 billion share sale for Adani Enterprises, in what some saw as a stamp of investor confidence at a time of crisis. Reuters Graphics[1/5] Indian billionaire Gautam Adani speaks during an inauguration ceremony after the Adani Group completed the purchase of Haifa Port in Haifa port, Israel January 31, 2023. The U.S. dollar-denominated bonds of Adani Ports maturing in February 2031 led the losses, falling 3.59 cents to 67.58 cents.

[1/5] Indian billionaire Gautam Adani speaks during an inauguration ceremony after the Adani Group completed the purchase of Haifa Port in Haifa port, Israel January 31, 2023. "The kind of fall that we are seeing in Adani stocks is scary," said Avinash Gorakshakar, head of research at Mumbai-based Profitmart Securities. After losing $86 billion in recent days, the seven listed Adani Group entities now have a combined market capitalisation of about $131 billion. LIC owned a 4.23% stake in Adani Enterprises as of end-December and more than 9% in Adani Ports and Special Economic Zone. Siddhartha Mohanty, one of LIC's managing directors, said in interviews on Monday that the insurer was engaging with the Adani Group but was positive on its investments.

Before the critical report by U.S. short-seller Hindenburg, Adani had ranked third. The report by Hindenburg Research last week alleged improper use by the Adani Group of offshore tax havens and stock manipulation. Adani Power (ADAN.NS) fell 5%, while Adani Total Gas (ADAG.NS) slumped 10%, down by its daily price limit. Headaches for the Adani Group are expected to continue for some time. Hindenburg said in its report it had shorted U.S.-bonds and non-India traded derivatives of the Adani Group.

The port-to-property group, led by Gautam Adani, one of the world's richest people, has denied the allegations and called them baseless, adding it has always made the necessary regulatory disclosures. "But from an offshore investor's perspective the allegations (made by Hindenburg) ... do not seem to be clearly addressed," he said. The U.S. short-seller has said Adani's "response largely confirmed our findings and ignored our key questions." Australia's corporate regulator said on Wednesday it would review the Hindenburg report as concerns raised also relate to Adani's Australian operations. Adani Enterprises lost nearly 6% on Wednesday to bring its losses since the Hindenburg report to more than $8 billion.

☆ Gautam Adani no longer Asia's richest person as stock rout deepens to $74 billion
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +3 min

[1/4] Indian billionaire Gautam Adani speaks during an inauguration ceremony after the Adani Group completed the purchase of Haifa Port earlier in January 2023, in Haifa port, Israel January 31, 2023. REUTERS/Amir CohenBENGALURU, Feb 1 (Reuters) - India's Gautam Adani lost his title of Asia's richest person on Wednesday as a rout in his conglomerate's stocks deepened to $74 billion after a short-seller report. The Adani Group has denied the allegations, calling them baseless and saying it has always made necessary regulatory disclosures. Before the Hindenburg report, Adani had ranked 3rd. Adani Power (ADAN.NS) fell 5%, while Adani Total Gas (ADAG.NS) slumped 10%, down by its daily price limit.

[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. REUTERS/Amit DaveMUMBAI, Jan 31 (Reuters) - Indian conglomerate Adani Group's locally listed bonds have resisted the panic selling in the groups' dollar-denominated debt and domestically listed stocks since last Wednesday following short-seller Hindenburg Research's scathing report on the group. The top five Adani Group companies – Adani Power (ADAN.NS), Adani Green Energy (ADNA.NS), Adani Ports and Special Economic Zone (APSE.NS), Adani Enterprises (ADEL.NS) and Adani Transmission (ADAI.NS) – have outstanding rupee bonds worth around 170 billion rupees, according to brokerage CLSA. However, Srinivasan said the Adani Group firms could find it difficult to raise fresh funds from the local bond markets until the concerns raised by Hindenburg were addressed. Moreover, Adani Group companies have not been rolling over many of their short-term commercial papers and instead allowed them to mature.

☆ Australian regulator to review short-seller report on India's Adani
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +2 min

[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. REUTERS/Amit DaveSYDNEY, Feb 1 (Reuters) - Australia's corporate regulator said on Wednesday it will review a short-seller report that has flagged a wide range of concerns about India's Adani Group. Bravus, an Australian Adani Group company, said in a statement that the group "refutes all allegations" made in the Hindenburg report about its Australian operations and that it has publicly provided evidence to back up its stance. Adani Group's Australian businesses all comply with the law, a spokesperson said, adding that none had been contacted by ASIC or the Australian Tax Office about Hindenburg Research's allegations. The Hindenburg report "presents transactions related to Adani's Australian businesses in a misleading way to purposefully undermine the reputation of the Adani Group, in order to pursue their own profit by short-selling shares in Adani Group companies," the statement said.

☆ Adani Group stocks rout deepens to $72 bln despite share sale completion
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Feb 1 (Reuters) - Most Adani Group stocks dropped on Wednesday, extending losses to $72 billion after a short-seller report criticised the conglomerate and despite the group completing a closely watched share sale a day earlier. It added that shares in seven Adani listed companies have an 85% downside due to what it called "sky-high valuations". Adani Power (ADAN.NS) fell 5%, while Adani Total Gas (ADAG.NS) slumped 10%, down by its daily price limit. Adani Enterprises had bounced over the last two sessions as the group mustered support from investors to haul the flagship firm's share sale over the line on the last day of sale. Hindenburg said in its report it had shorted U.S.-bonds and non-India traded derivatives of the Adani Group.

☆ Markets 'overpricing' Indian banks' risk from Adani exposure - Societe Generale
▼ + stars: | 2023-02-01 | by ( Anshuman Daga | ) www.reuters.com time to read: +2 min

SINGAPORE, Feb 1 (Reuters) - Markets are "overpricing" the risk to Indian lenders from their exposure to Adani Group, which was targeted last week in a report by short-seller Hindenburg Research, Societe Generale said, adding that a sell-off in banking shares seems overdone. The allegations in the report, which the ports-to-energy conglomerate has denied, triggered a $65 billion rout in the Indian billionaire's stocks. "We think the market is overpricing the related risks, as we calculate the sector's direct exposure to the Adani group at just 0.6%," they added. Assuming no significant change in the debt structure over the past year, SocGen estimated that Indian banks' loan exposure to Adani was close to $10 billion, just 0.6% of total banking sector loans at nearly $1.5 trillion. It said Indian banks were among the "best positioned" to gain from a rebound in capital expenditure and said it expected more "favourable" valuations post the correction.

On Tuesday, the Adani group appeared to have fought back the attack by the New York-based short-seller Hindenburg and rallied investors behind the $2.5 billion share issue of flagship firm Adani Enterprises (ADEL.NS). It was a rare defeat for a man who has seemed unstoppable in recent years. In recent years, the $220 billion Adani Group empire has attracted foreign investment - France's TotalEnergies (TTEF.PA), for example, partnered with Adani last year to develop the world's biggest green hydrogen ecosystem. On Wednesday, Adani said his company felt it wasn't "morally correct" to proceed with the share sale following the volatility in the market. But he said in a statement to the exchange the company was financial stable and that the withdrawal of the share issue will not impact its future plans.

☆ Asia's richest no more? Gautam Adani's wealth crashes as $90 billion wiped off business
▼ + stars: | 2023-02-01 | by ( Diksha Madhok | ) edition.cnn.com time to read: +2 min

The conglomerate, which has seven listed companies, has lost more than $90 billion in market value in the week since Hindenburg published its report. That stock market rout has wiped nearly $40 billion off Adani’s personal fortune. Ambani’s net worth stands at $83 billion, making him the world’s ninth-richest person, while Adani’s wealth is estimated at about $75 billion, according to Forbes. The turmoil comes despite a brief respite Tuesday for Adani when his flagship firm, Adani Enterprises, managed to issue new shares worth $2.5 billion. At the peak of his wealth last year, Adani was the world’s second-richest person, ahead of Jeff Bezos.

☆ Adani vs. Hindenburg: How Asia’s richest man lost his crown in just a few days
▼ + stars: | 2023-02-01 | by ( Jihye Lee | ) www.cnbc.com time to read: +5 min

Gautam Adani, billionaire and chairman of Adani Group, during an event at the Port of Haifa in Haifa, Israel, on Tuesday, Jan. 31, 2023. According to Forbes, Gautam Adani, the founder and chairman of the group, has lost his status as Asia's richest man to Mukesh Ambani, the chairman of Reliance Industries. Hindenburg, which said it has taken a short position in Adani Group, stands to benefit from the declining value of those stocks. Adani's battle with the short-seller firm has put the group's exposure to Wall Street — amounting to nearly $9 billion, according to JPMorgan — under the spotlight. In just one week, Indian billionaire Gautam Adani saw more than $34 billion wiped off his net worth, according to the Bloomberg Billionaires Index.

☆ Adani abandons $2.5 billion share sale in big blow to Indian tycoon
▼ + stars: | 2023-02-01 | by ( Aditya Kalra | ) www.reuters.com time to read: +4 min

"Today the market has been unprecedented, and our stock price has fluctuated over the course of the day. A report by Hindenburg Research last week alleged improper use by the of offshore tax havens and stock manipulation by the Adani Group. The Jan. 24 report has since triggered a $86 billion erosion in market capitalisation of seven listed Adani Group companies. REFUNDSAdani Group was working with its bankers to refund the proceeds received by in the secondary share sale of Adani Enterprises. The share sale had succeeded on Tuesday even when the Adani Enterprises stock price in Mumbai markets traded below the offer price of the share sale.

☆ Gautam Adani calls off $2.5 billion equity sale as regulatory concerns grow
▼ + stars: | 2023-02-01 | by ( Seema Mody | ) www.cnbc.com time to read: +3 min

(Photo by Indranil MUKHERJEE / AFP) (Photo by INDRANIL MUKHERJEE/AFP via Getty Images)On Wednesday, Gautam Adani announced he's scrapping his firm's $2.5 billion equity sale. He withdrew the offering for shares in Adani Enterprises, the flagship of the Indian conglomerate Adani Group, after the stock tanked by nearly 30%. Adani Group has denied the allegations, saying they have "no basis" and stem from an ignorance of Indian law. Adani Enterprises' stock ended higher on Tuesday following news of the fully subscribed $2.5 billion offering. Investors woke up to an ugly picture on Wednesday when Adani Enterprise's stock plunged, falling by as much as 28% and prompting Adani to cancel his equity sale.

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