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☆ 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.

☆ Gautam Adani isn't Asia's richest person any more after losing over $50 billion as his companies' stock rout deepens
▼ + stars: | 2023-02-01 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +3 min

Gautam Adani is no longer Asia's richest person, after falling to 15th place on Forbes' billionaires list. The Indian industrialist has lost over $50 billion as Adani Group stocks continue a weeklong selloff. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. He was overtaken by Mukesh Ambani, the chairman of Reliance Industries who is worth $83.7 billion and ranks 9th on the list. While some took India's largest follow-on share issue as a sign that investors were sticking by the conglomerate despite the scathing Hindenburg report, shares in Adani Enterprises sank nearly 30% on Wednesday.

☆ Morning Bid: A quart and two halves
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +5 min

A look at the day ahead in U.S. and global markets from Mike Dolan. February kicked off on Wednesday without too much trepidation about how all that will pan out. Before the Fed announcement, ADP releases its January private sector employment readout for last month and markets will also scan the December JOLTS job openings report. While markets await the 'Triple-A' of Big Tech releases on Thursday, Meta (META.O) is due to report later today and the dour news from elsewhere in the tech sector kept coming. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

India's largest ever secondary share sale attracted participation from anchor investors including Maybank Securities and Abu Dhabi Investment Authority, as well as India's HDFC Life Insurance and state-backed Life Insurance Corporation (LIFI.NS). By Tuesday the overall share sale was fully subscribed as foreign institutional investors and corporate funds flooded in, although participation by retail investors and Adani Enterprises (ADEL.NS) employees remained low. Support for Adani's share sale came even as the flagship's shares closed at 2,973.9 rupees, up nearly 3% but below the lower end of the sale price band of 3,112 rupees. So, what happens to one particular corporate group, is a matter between the market and the corporate group." Reuters GraphicsHindenburg said in its report it had shorted U.S.-bonds and non-India traded derivatives of the Adani Group.

The secondary share sale of flagship Adani Enterprises (ADEL.NS) was subscribed 93% on Tuesday, including the anchor investor portion, Indian stock exchange data showed. The share sale needed at least 90% subscription to go through. By Monday, the book building process of the country's largest share sale had received only 3% in bids, amid swirling concerns that the share sale could struggle due to a market rout in Adani's stocks in recent days. That has since sparked $65 billion in cumulative losses for stocks of the Adani group, which called the report baseless. The support for Adani's share sale came even as the flagship's shares were trading at 2,967 rupees, up nearly 2.5% but below the lower end of the share sale price band of 3,112 rupees.

☆ Explainer: Adani vs Hindenburg: What you need to know
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +3 min

Founded in 2017 by Nathan Anderson, Hindenburg Research is a forensic financial research firm which analyses equity, credit and derivatives. Hindenburg disclosed that it holds short positions in Adani companies through U.S.-traded bonds and non-Indian-traded derivative instruments. Reuters reported the regulator will continue this scrutiny and draw on any fresh information in the Hindenburg report. The Adani group said that several of the CFOs that the Hindenburg report points to have remained within the group and moved on to new roles. The report says key listed Adani companies have substantial debt and are over-leveraged.

Adani Enterprises, the flagship firm, was trading 4% higher at 3,000 rupees, still below the lower end of the share sale's price band of 3,112 rupees. But other group stocks, including Adani Power (ADAN.NS), Adani Green (ADNA.NS) and Adani Total Gas (ADAG.NS), were down 5%-10%, extending their falls after Adani's 413-page response to Hindenburg's allegations failed to boost investor confidence. An unsuccessful share sale would be a stunning setback for Adani whose group has in recent days repeatedly said investors were standing by its side and the share offering will go through. The share sale needs at least 90% subscription to go through. Hindenburg said in its report it has shorted U.S.-bonds and non-India traded derivatives of the Adani Group.

☆ India's Adani Enterprises enters final day of crucial $2.5 billion share sale
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +1 min

A successful completion of the share sale will show investors still believe in the group's prospects and that it can weather the unprecedented short-seller challenge and its aftermath. Adani Enterprises stock opened at 2,932 rupees, still below the lower end of the share sale's price band of 3,112 rupees. The share sale needs at least 90% subscription to go through. Some other group stocks, including Adani Power (ADAN.NS), Adani Green (ADNA.NS) and Adani Total Gas (ADAG.NS), were down 5%-10%. Adani Wilmar (ADAW.NS) was down 5%, but Adani Ports and Special Economic Zone (APSE.NS) rose 0.5% at open.

☆ Factbox: Adani's $2.5 bln share offer gets investor backing after tumultuous week
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +1 min

Jan 31 (Reuters) - The secondary share sale of billionaire Gautam Adani's flagship Adani Enterprises (ADEL.NS) was fully subscribed on Tuesday, after a rough week for the Indian group that saw a sharp sell-off in its shares following a scathing short-seller report. Foreign institutional investors and corporates pumped in funds into the share sale, according to data, while participation by retail investors and Adani Enterprises employees remained low. Adani has called Hindenburg Research's report a "calculated attack". U.S.-based Hindenburg disclosed last week that it holds short positions in Adani companies and accused the conglomerate of improper use of offshore tax havens, and also flagged concerns about its debt levels. Below is what some of the investors who subscribed to the follow-on public offer (FPO) - either as anchor investors earlier this month or after the short-seller report - had to say about their exposure to Adani:Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ Meet Gautam Adani, the Indian industrialist who started 2023 worth almost as much as Elon Musk, but whose wealth has plummeted rapidly
▼ + stars: | 2023-01-31 | by ( Grace Dean | ) www.businessinsider.com time to read: +6 min

Gautam Adani's wealth has fallen by more than a quarter over the first month of 2023. Adani founded the Adani Group, which was the target of a bombshell report by a short seller. Adani is founder and chairman of the Adani Group, a multinational conglomerate with businesses spanning energy, mining, ports, and airports. A report by Hindenburg Research, an investment-research firm and short seller, was the catalyst for the downwards spiral of Adani's wealth. According to Bloomberg, he holds close to 75% stakes in Adani Enterprises, Adani Power, and Adani Transmissions.

[1/5] 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 CohenSummarySummary Companies Adani scripts comeback by completing share saleKey $2.5 billion share sale fully subscribed-dataShort-seller's report led to fall in Adani sharesMUMBAI, Jan 31 (Reuters) - Gautam Adani's crucial $2.5 billion share sale was fully subscribed on Tuesday as investors pumped funds into his flagship firm, despite a $65 billion rout in the Indian billionaire's stocks sparked by a short-seller's report. Support for Adani's share sale came even as the flagship's shares closed at 2,973.9 rupees, up nearly 3% but below the lower end of the sale price band of 3,112 rupees. So, what happens to one particular corporate group, is a matter between the market and the corporate group." Hindenburg said in its report it had shorted U.S.-bonds and non-India traded derivatives of the Adani Group.

☆ Instant View: Adani's $2.5 billion offer rides out share storm with investor backing
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +5 min

COMMENTARYAMBAREESH BALIGA, INDEPENDENT MARKET ANALYST, MUMBAI"The FPO did get subscribed, thanks to a few institutional as well as large family offices. DEEPAK JASANI, HEAD OF RETAIL RESEARCH, HDFC SECURITIES, MUMBAI"For Indian markets, one of the concern areas is out of the way for the time being as this was weighing on investor sentiment. Since the current market price is below the offer price, the retail subscription was low as investors can rather buy it from the market." That was their focus area considering the fact that there was a difference between the market price and the floor price of the FPO. It seems that retail investors did not consider the fact that there is more to rates than just the price."

☆ Adani rides out storm as investors rally behind $2.5 billion share sale
▼ + stars: | 2023-01-31 | by ( ) www.cnbc.com time to read: +4 min

But on Tuesday, the overall share sale was fully subscribed as foreign institutional investors and corporates pumped in funds, although participation by retail investors and Adani Enterprises employees remained low. That sparked $65 billion in cumulative losses for stocks of the Adani group, which called the report baseless. The support for Adani's share sale came even as the flagship's shares closed at 2,973.9 rupees, up nearly 3% but below the lower end of the sale price band of 3,112 rupees. Demand mostly came from foreign institutional investors, as well as corporates who bid in excess of 1 million rupees each, data showed. Adani Transmission closed nearly 4% higher on Tuesday after losing 38% since the Hindenburg report, while Adani Ports and Special Economic Zone climbed 2.6%.

☆ Adani’s battle with Hindenburg leaves investors sizing up exposure to the global banking sector
▼ + stars: | 2023-01-31 | by ( Seema Mody | ) www.cnbc.com time to read: +4 min

Indeed, Indian banks make up 0.6% of the group's sector loans, according to JPMorgan. This may seem low but the total exposure to the Adani Group is still around $9 billion, wrote Saurabh Kumar, an analyst at JPMorgan. Gautam Adani, chairman of Adani Group. Jefferies analyst Prakhar Sharma writes that, for now, the risk to Indian banks is low, saying, "we don't see material risk to the Indian banking sector." Of the seven companies operated by the Adani Group: Adani Green Energy, Adani Power and Adani Ports are sitting on the most net debt, according to analysts.

☆ Morning Bid: 'Soft landing' or 'no landing'?
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +5 min

As U.S. Federal Reserve's Federal Open Market Committee kicks off its two-day policymaking meeting, the economic news from around the world brightened considerably. China's economic activity swung back to growth in January after three months of contraction, according to official business surveys released on Tuesday. The euro zone economy confounded forecasts for a quarterly contraction of gross domestic product in the final three months of 2022. Eurostat estimated GDP in the bloc rose 0.1% in Q4 despite consensus expectations for a fall of 0.1%. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Warren Buffett is the only top-10 billionaire to become poorer this year after Berkshire Hathaway missed out on the stock market's rally
▼ + stars: | 2023-01-31 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Berkshire Hathaway stock is trailing the S&P 500's 5% gain and the Nasdaq's 10% jump this month. Amazon stock has jumped 17% this year, while Microsoft stock has inched up 1%. Investors flocked to Berkshire stock in 2022, sending its stock price up about 3% even as the S&P 500 slumped 19% and the Nasdaq tumbled by one-third. While Buffett is the only top-10 billionaire in the red this year, he's still ranked fifth in the index. Adani Group's stock price has plunged in recent days after short-seller Hindenburg Research released an incendiary report on the company.

☆ It's been a very bad month for Indian billionaires — four of the richest Indians have collectively lost about $45 billion in 2023
▼ + stars: | 2023-01-31 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Indian billionaires are leading losses on the Bloomberg Billionaires Index so far this year. That's on the back of a massive selloff in Adani Group's listed businesses and the broader Indian market. Adani's listed companies have come under significant pressure following a short-seller attack. The Adani Group has been defending itself vigorously, but Hindenburg's also doubling down on it's initial report. Trailing Adani on the Bloomberg Billionaires Index are fellow Indian billionaires Mukesh Ambani, Radhakishan Damani, and Savitri Jindal, who have lost about $5 billion, $2 billion, and $1 billion so far this year.

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."

☆ India's Adani Group CFO says stocks rout similar to colonial-era massacre
▼ + stars: | 2023-01-30 | by ( Krishna N. Das | ) www.reuters.com time to read: +2 min

REUTERS/Francis MascarenhasNEW DELHI, Jan 30 (Reuters) - India's Adani Group has said a U.S. short-seller's report on the business house was a "calculated attack" on the country and its institutions while a senior executive has compared a rout of its stocks with a colonial-era massacre. Adani's finance chief, Jugeshinder Singh, likened the behaviour of Indian investors participating in the sell-off to the colonial-era Jallianwala Bagh massacre in Amritsar city. Hindenburg said in a statement on Monday that the Adani Group was trying to "lead the focus away from substantive issues and instead stoked a nationalist narrative". "In short, the Adani Group has attempted to conflate its meteoric rise and the wealth of its chairman, Gautam Adani, with the success of India itself," it said. Jawhar Sircar, a lawmaker from the opposition Trinamool Congress, posted on Twitter: "Since when is Adani = India?"

☆ 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.

☆ 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.

☆ Campaigners urge bond investors to shun Adani Group on green concerns
▼ + stars: | 2023-01-30 | by ( Isla Binnie | ) www.reuters.com time to read: +2 min

NEW YORK, Jan 30 (Reuters) - An advocacy group focused on the impact of debt markets on climate change called on Monday for major bond investors to shun India's Adani Group, saying a critical report by a short-seller had undermined confidence in the company's governance. Billionaire chairman Gautam Adani, one of the world's richest people, dismissed these as baseless. Spokespeople for the Adani Group, BlackRock, Allianz and Pimco did not immediately respond to requests for comment. Green bonds, used to raise funds for specific projects that are seen to benefit the environment, are one of Adani's sources of financing. "The interconnected financial nature of the Adani Group makes it clear that buying debt from any subsidiary of Adani, is by extension supporting Adani's mining businesses," Haines said in the letter.

☆ 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.

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%.

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