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☆ Gautam Adani lost $52 billion in 6 days. That's over 3 times what Sam Bankman-Fried lost in a similar timeframe.
▼ + stars: | 2023-02-03 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Indian billionaire Gautam Adani lost $52 billion in net worth over six trading days. Shares in Adani Group companies have lost over $100 billion in market cap since a US short seller's fraud allegations. Adani — whose empire is under pressure from a US short seller — has already lost $52 billion in just six trading days, according to the Bloomberg Billionaires Index. Adani is now worth $61.3 billion and on the 21st spot on the Bloomberg Billionaires Index. The dramatic decline in Adani's net worth is because much of his wealth is derived from his stakes in his businesses.

☆ S&P Dow Jones is knocking Adani Enterprises off its sustainability index
▼ + stars: | 2023-02-03 | by ( Jihye Lee | ) www.cnbc.com time to read: 1 min

Signage atop the Adani Group headquarters in Ahmedabad, India, on Wednesday, Feb. 1, 2023. Bonds of the Indian billionaires flagship firm plunged to distressed levels in US trading, and the company abruptly pulled a record domestic stock offering. Adani Enterprises is coming off the Dow Jones Sustainability Indices, effective Feb. 7, S&P said in an announcement. "Adani Enterprises will be removed from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud," it said in a one-line notice. Adani Enterprises was added to the Dow Jones Sustainability Emerging Markets Index as of Dec. 19, 2022, according to a list of components on S&P Global's website.

☆ Total: Adani will ask Big 4 accounting firm for 'general audit'
▼ + stars: | 2023-02-03 | by ( Olesya Dmitracova | ) edition.cnn.com time to read: +3 min

In total, Adani Group companies have lost $110 billion in market value. Adani Group declined to comment on whether it was planning to appoint one of the Big 4 accounting firms as auditor. A document on Adani Enterprises’ website dated January 13, 2023, also names Shah Dhandharia as “statutory auditors” and provides the firm’s website address. In its report, Hindenburg Research said historical archives of the firm’s website showed that it had only four partners and 11 employees. Trading in five listed Adani firms was halted Friday after they fell to daily limits set by the Indian stock exchange.

☆ Adani Group shares continue to slide as Hindenburg rout deepens
▼ + stars: | 2023-02-03 | by ( Diksha Madhok | ) edition.cnn.com time to read: +2 min

New Delhi CNN —Shares in Adani Group companies continued to plunge on Friday, as the embattled conglomerate grapples with stock market mayhem unleashed after a US short seller accused it of fraud. But his address did little to halt the stock market meltdown that has wiped more than $100 billion off the combined market value of his companies. The unprecedented crash in value of Adani Group shares started when an American short seller, Hindenburg Research, accused the conglomerate of fraud and stock market manipulation. The Adani Group has denounced the report as “baseless” and “malicious,” but analysts say the group hasn’t convincingly answered the questions raised by Hindenburg’s report. Adani’s personal fortune has taken a massive hit because of the stock market turmoil.

Chairperson of Indian conglomerate Adani Group, Gautam Adani, speaks at the World Congress of Accountants in Mumbai on November 19, 2022. Shares of India's Adani Enterprises have plummeted over the past week, after the publication of an extensive critical report from U.S. short-seller Hindenburg Research. The ports-to-energy conglomerate, led by one of the world's richest men, Gautam Adani, has vehemently denied wrongdoing. The Adani Group firmly denies the accusations, calling them "nothing but a lie" from the "Madoffs of Manhattan" in a 413-page riposte that failed to soothe skittish investor sentiment and rein in a rapid sell-off. Adani owns 64% of Adani Enterprises — the Adani SB Family holds 55.27%, while 8.73% is with Adani Tradeline Pvt Ltd, where Gautam and brother Rajesh Adani are controlling directors.

☆ 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.

☆ Indian shares set to rise on easing inflation concerns; Adani stocks in focus
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +2 min

BENGALURU, Feb 3 (Reuters) - Indian shares are set to open higher on Friday, as global central banks hinted at inflation easing, spurring optimism that the rate hike cycle may be near an end, while the ongoing rout in Adani group stock could cap gains. After the U.S. Federal Reserve acknowledged in its monetary policy decision on Wednesday that the disinflationary process may have begun, the European Central Bank and the Bank of England followed suit on Thursday. Analysts said that the selloff in Adani stocks has created panic in Indian markets. Foreign institutional investors sold 30.64 bln rupees ($373.23 million) worth of shares on a net basis on Thursday while domestic institutional investors purchased 23.71 bln rupees worth of shares, official data showed. ($1 = 82.0940 Indian rupees)Reporting by Bharath Rajeswaran in Bengaluru; Editing by Janane VenkatramanOur Standards: The Thomson Reuters Trust Principles.

But the market turmoil led its flagship Adani Enterprises (ADEL.NS) to abandon a $2.5 billion secondary share offering on Wednesday, prompting concerns at lenders. 1 lender, SBI says the bank has about 270 billion rupees ($3.3 billion) in loans to Adani Group. Bank debt forms 38% of the total debt of 2.1 trillion rupees at the top five Adani companies, according to a Jefferies report. Senior executives at six other Indian lenders, with exposure to Adani companies, told Reuters they had also decided to tighten the credit approval process for Adani. India's central bank has asked local banks for details of their exposure to Adani companies, Reuters reported on Thursday, citing government and banking sources.

☆ European markets set to pull back as investors watch economic data, earnings
▼ + stars: | 2023-02-03 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

LONDON — European markets are set to retreat slightly on Friday as investors digest key central bank decisions, economic data and corporate earnings. The pan-European Stoxx 600 index enjoyed a strong session on Thursday after three major central banks largely delivered on market expectations. The European Central Bank hiked interest rates by 50 basis points and signaled a further hike of the same scale in March, vowing to "stay the course" as it looks to reel in inflation. On Wednesday, the U.S. Federal Reserve raised its benchmark rate by a quarter percentage point but gave little indication of an imminent end to its hiking cycle. Investors stateside will also be looking to a key data point Friday in the form of the January jobs report.

☆ Morning Bid: Runaway Tech arrested
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +5 min

The coast may be clearing on interest rates but a spluttering economy still has the power to check runaway stock markets. Friday's release of January's U.S. employment report will provide some clues - but Big Tech gave its own readout on Thursday. Apple earnings fell short of expectations and it forecast revenue would fall for a second quarter in a row. But even though iPhone sales fell for the first time since 2020, it said sales were likely to improve as production had returned to normal in China after COVID-related shutdowns. To what extent layoffs in the tech sector are fanning out across the economy will be monitored in the payrolls report later and the Fed will be watching wage growth like a hawk.

☆ Adani Group’s Moment of Truth
▼ + stars: | 2023-02-02 | by ( Megha Mandavia | ) www.wsj.com time to read: 1 min

Global investors, who largely funded Adani Group ’s rising debt in recent years, are shunning its bonds after an attack from a New York-based short seller. Regaining markets’ confidence—or finding new private funding—will be essential to avoid problems as the Indian conglomerate’s dollar bonds start coming due. After a brief rally following Adani Enterprises’ successful completion of a new share offer on Tuesday in India, prices of many of the group’s dollar bonds—including issues from Adani Ports and Adani Green maturing in 2024—continued their slide on Wednesday. Adani Enterprises, whose shares are now at half of the offer price on the new issue, on Wednesday evening in India said it was canceling the sale and would return the proceeds to investors.

☆ Losses From Adani Stock Rout Top $100 Billion
▼ + stars: | 2023-02-02 | by ( Dave Sebastian | Weilun Soon | ) www.wsj.com time to read: 1 min

Gautam Adani said Thursday that the assets of his namesake conglomerate were robust. Shares of companies linked to Indian billionaire Gautam Adani continued to slide on Thursday, after his namesake conglomerate canceled a planned share sale that was meant to raise more than $2 billion. Adani Enterprises Ltd., the group’s flagship business that scrapped its follow-on public offering after a plunge in its shares the previous day, fell another 26% on Thursday. The shares have lost more than half their value since Hindenburg Research, a U.S. short seller, released a scathing report last week alleging fraud and stock-price manipulation at Mr. Adani’s conglomerate.

☆ Adani shares plunge after botched $2.5 bln share sale
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: +1 min

Adani on Wednesday called off the share sale as a rout sparked by a U.S. short-seller's criticisms wiped billions more off the value of the Indian tycoon's stocks. Shares in Adani Enterprises (ADEL.NS) dropped 8%, after opening 10% higher, while Adani Ports and Special Economic Zone (APSE.NS) fell 10%. Adani Total Gas (ADAG.NS) was down 10%, Adani Power (ADAN.NS) lost 5%, Adani Wilmar (ADAW.NS) sank 5% while Adani Green Energy (ADNA.NS) tumbled 10%. The withdrawal of the Adani Enterprises (ADEL.NS) share marked a stunning setback for Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years in line with the stock values of his businesses. Citigroup's (C.N) wealth unit has stopped extending margin loans to its clients against securities of Adani group, a source with direct knowledge of the matter said.

☆ 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.

☆ Breakingviews: Adani’s share sale U-turn spares only some blushes
▼ + stars: | 2023-02-02 | by ( Una Galani | ) www.reuters.com time to read: +4 min

HONG KONG, Feb 2 (Reuters Breakingviews) - Markets have given Gautam Adani a big bloody nose, and his backers a partial reprieve. The tycoon’s decision on Wednesday to pull the $2.4 billion share sale at his flagship Adani Enterprises (ADEL.NS) was all but forced after a 28% plunge in the company’s share price the day after it closed the books. That danger was magnified on Wednesday with India’s regulator looking into possible irregularities around the share sale, Reuters reported exclusively citing a source with direct knowledge of the matter. Less than one quarter was due to pay down borrowings at the issuer and its unlisted subsidiaries, including Adani Airport and Adani Road. loadingCONTEXT NEWSAdani Enterprises on Feb. 1 said it is withdrawing its $2.4 billion share sale due to the “unprecedented situation and the current market volatility”.

☆ Jupiter declines to comment on cancelled Adani share offering
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: 1 min

LONDON, Feb 2 (Reuters) - Jupiter Fund Management (JUP.L), an anchor investor in Adani Enterprises' (ADEL.NS) cancelled $2.5 billion share offering, told Reuters on Thursday it had no immediate comment on the deal being withdrawn. Jupiter was notable as being the sole UK-listed fund manager to back the share offering for the subsidiary of embattled Indian conglomerate Adani Group, which has lost some $100 billion in market capitalisation in recent days following a short seller's report. Adani Enterprises its $2.5 billion stock offering on Wednesday. Reporting by Lawrence White; editing by Jason NeelyOur Standards: The Thomson Reuters Trust Principles.

☆ 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 losses top $100 billion in wake of Hindenburg Research report
▼ + stars: | 2023-02-02 | by ( Ruxandra Iordache | ) 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. The Adani firmly denied the accusations as "nothing but a lie" from the "Madoffs of Manhattan" in a 413-page riposte that failed to soothe skittish investor sentiment and rein in a rapid sell-off. "It is tremendously concerning that the statements of an entity sitting thousands of miles away, with no credibility or ethics has caused serious and unprecedented adverse impact on our investors," the Adani response said, describing Hindenburg as an "unethical short seller." "Hindenburg has not published this report for any altruistic reasons but purely out of selfish motives and in flagrant breach of applicable securities and foreign exchange laws," it said. Hindenburg on Jan. 29 retorted that the Adani commentary "predictably tried to lead the focus away from substantive issues and instead stoked a nationalist narrative, claiming our report amounted to a 'calculated attack on India'."

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.

☆ Indian tycoon Gautam Adani has abandoned a $2.5 billion fundraising effort in his latest setback following a short seller attack on his business empire
▼ + stars: | 2023-02-02 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Indian tycoon Gautam Adani pulled a $2.5 billion share sale for Adani Enterprises on Wednesday. Shares in Adani Group companies have lost $92 billion in market cap since a US short seller's fraud allegations. The stunning reversal came even though Adani Enterprises' offering was fully subscribed Tuesday thanks to institutional investors, Bloomberg reported. The Adani Group has been defending itself vigorously, but Hindenburg has also doubled down on its initial report. The Securities and Exchange Board of India and the Adani Group did not immediately respond to Insider's requests for comment.

☆ 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.

☆ Gautam Adani’s crisis will hit India hard: podcast
▼ + stars: | 2023-02-02 | by ( Aimee Donnellan | ) www.reuters.com time to read: 1 min

Breakingviews: Adani’s share sale U-turn spares only some blushes, article with imageBreakingviews category · February 2, 2023 · 1:44 AM UTCMarkets have given Gautam Adani a big bloody nose, and his backers a partial reprieve. The tycoon’s decision on Wednesday to pull the $2.4 billion share sale at his flagship Adani Enterprises was all but forced after a 28% plunge in the company’s share price the day after it closed the books. Cancelling the deal is marginally better than stuffing above-market-price stock down investors’ throats. The U-turn is nonetheless a key sign the support for the Indian industrialist has a limit.

☆ Gautam Adani fails to calm investors over market mayhem that wiped out billions
▼ + stars: | 2023-02-02 | by ( Diksha Madhok | ) edition.cnn.com time to read: +4 min

New Delhi CNN —Indian billionaire Gautam Adani tried to reassure investors on Thursday after he abruptly abandoned his flagship firm’s $2.5 billion share sale. “Once the market stabilizes, we will review our capital market strategy.”This was the first time the tycoon has spoken about the stock market mayhem that has wiped billions off his logistics and energy business empire. A week-long meltdown in the value of Adani Group shares started when an American short seller accused the conglomerate of fraud. Despite the turmoil, the group’s flagship company, Adani Enterprises, managed to issue new shares worth $2.5 billion on Tuesday. Shares in Adani Enterprises were down almost 9% in Mumbai, while shares in his other companies plunged 5% to 10%.

☆ 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.

☆ India's NSE puts trades in some Adani firms under additional watch
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: +2 min

The NSE also placed Monarch Networth Capital (MONR.NS), one of the 10 underwriters of Adani Enterprises' (ADEL.NS) botched share sale, under additional surveillance. The Ahmedabad-based brokerage was responsible for "non institutional marketing", according to the Adani share sale document. Last year, Adani Group acquired Ambuja Cements Ltd (ABUJ.NS) and ACC (ACC.NS) from Holcim AG (HOLN.S) to enter the business. Adani Enterprises tumbled 27%, closing at their lowest level since March 2022. Adani Group did not immediately respond to a request for comment on the exchange's latest decision.

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