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☆ Exclusive: Indian market regulator examining Adani share rout, source says
▼ + stars: | 2023-02-01 | by ( Jayshree Pyasi | ) www.reuters.com time to read: +3 min

[1/2] 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. Spokespeople for Adani Group and SEBI did not immediately respond to a request for comment. The share plunge was sparked by a report by Hindenburg Research last week which alleged improper use by the Adani Group of offshore tax havens and stock manipulation. The source told Reuters the Indian market regulator is also looking into any possible price manipulation of Adani group stocks, as well as examining possible irregularities in the $2.5 billion share sale of the flagship firm Adani Enterprises (ADEL.NS), which concluded on Tuesday. On Wednesday, a day after the share sale closed, Adani Enterprises (ADEL.NS) plunged 28%, bringing its losses since the Hindenburg report to more than $18 billion.

☆ Mutual funds have low exposure to Adani companies
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +1 min

Feb 1 (Reuters) - Mutual funds have low exposure to listed Adani Group companies, whose shares have dropped since publication of a report into the group by Hindenburg Research on Jan. 24. Mutual funds from India and elsewhere hold just 3.4% of Adani Enterprises (ADEL.NS), 2.8% of Adani Total Gas (ADAG.NS) and 3.6% of Adani Green Energy (ADNA.NS). Adani Enterprises and Adani Port (APSE.NS) are constituents of the Nifty 50, so they are automatically in portfolios of some exchange-traded funds (ETFs) and index funds. But active funds have very little exposure to Adani stocks and are largely unscathed by their fall. Among active funds, the Kotak Balanced Advantage fund , which has positions in Adani Enterprises and Adani Ports and Special Economic Zone, has shed just 0.5%.

☆ Gautam Adani's statement on withdrawing $2.5 bln share sale
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +2 min

Here is what billionaire chairman Gautam Adani said:"The Board takes this opportunity to thank all the investors for your support and commitment to our FPO. The subscription for the FPO closed successfully yesterday. "However, today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the Company’s board felt that going ahead with the issue will not be morally correct." "We will continue to focus on long term value creation and growth will be managed by internal accruals.

☆ India's Adani ditches $2.5 bln share sale after $86 bln rout
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +3 min

NEW DELHI, Feb 1 (Reuters) - India's Adani Enterprises Ltd (ADEL.NS) on Wednesday withdrew its $2.5 billion secondary share sale after Adani Group shares plummeted on concerns raised by a U.S. short-seller. * Anchor investors Maybank Securities and Abu Dhabi Investment Authority pick up stake in Adani Enterprises' share sale, India's largest follow-on public offering (FPO). * Indian shares fell to their lowest level in more than a week, dragged lower by Adani Group stocks. * Adani Enterprises, the flagship company of the group founded by billionaire Gautam Adani, begins its $2.5 billion FPO for retail investors. JAN 31* Adani Enterprises' FPO fully subscribed as investors pumped funds into the share sale, despite the rout in the group's stocks.

☆ 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.

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 Draws Enough Investor Bids to Pull Off $2.5 Billion Stock Sale
▼ + stars: | 2023-01-31 | by ( Dave Sebastian | Weilun Soon | ) www.wsj.com time to read: 1 min

The flagship company of India’s Adani Group collected enough investor bids Tuesday to pull off a large stock sale, advancing its fundraising plans in the face of fraud allegations from a U.S. short seller. By Tuesday afternoon in India, a public share offering by Adani Enterprises Ltd. was slightly oversubscribed—indicating that the Mumbai-listed company would be able to complete the deal, which aimed to raise up to $2.5 billion.

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.

[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.

☆ 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%.

☆ 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.

☆ 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.

☆ Indian shares set to rise, with Adani Group, budget, Fed on watch
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +3 min

Indian snapped a losing streak on Monday as key Adani Group stocks arrested their two-session tumble since U.S-based short-seller Hindenburg Research, last week, flagged concerns about the groups' debt levels and the use of tax havens, charges the conglomerate has denied. Traders will also watch the budget for any incentives to entice foreign investors, who have piled out of the market, especially since the report on Adani Group. Foreign institutional investors have sold 151.65 billion rupees ($1.86 billion) worth of shares on a net basis in the past three sessions. STOCKS TO WATCH** Larsen & Toubro (LART.NS): The company reported a lower-than-expected rise in consolidated net profit in third quarter on moderate order growth. ** Bharat Petroleum (BPCL.NS): The company posted a slide in quarterly net profit on stagnant retail prices.

☆ 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.

☆ U.S., India partnership targets arms and AI to compete with China
▼ + stars: | 2023-01-31 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +3 min

WASHINGTON, Jan 31 (Reuters) - The White House is launching a partnership with India on Tuesday that President Joe Biden hopes will help the countries compete against China on military equipment, semiconductors and artificial intelligence (AI). Yet the White House faces an uphill battle on each front, including U.S. restrictions on military technology transfer and visas for immigrant workers, along with India's longstanding dependence on Moscow for military hardware, issues it hopes to now address. But Washington has held its tongue, nudging the country on Russia while condoning India's more hawkish stance on China. General Electric Co (GE.N), meanwhile, is asking the U.S. government for permission to produce jet engines with India that would power aircraft operated and produced by India, according to the White House, which says a review is underway. Reporting by Trevor Hunnicutt; Editing by Chris Sanders, Josie Kao and Himani SarkarOur Standards: The Thomson Reuters Trust Principles.

☆ 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’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.

☆ Adani vs Hindenburg: India’s top businessman faces biggest test
▼ + stars: | 2023-01-31 | by ( Diksha Madhok | ) edition.cnn.com time to read: +9 min

So, how did a relatively young and small New York financial research firm manage to bring the Adani juggernaut to a juddering halt? Much of his fortune is tied up in the sprawling Adani Group, which he founded over 30 years ago. This is not the first time analysts have expressed fear that the rapid expansion of Adani businesses comes with huge risk. In its response, Adani Group said that the “leverage ratios” of its companies “continue to be healthy and are in line with the industry benchmarks in the respective sectors. Adani Group “is not going anywhere,” said Rajat Sharma, founder of financial advisory firm Sana Securities.

☆ Adani Group Saga Is Credibility Test for India’s Markets, Institutions
▼ + stars: | 2023-01-30 | by ( Megha Mandavia | ) www.wsj.com time to read: +1 min

News about Adani appeared on a sign at the Bombay Stock Exchange, where shares of the group’s companies have plunged. The sprawling conglomerate built by Gautam Adani is under attack by short seller Hindenburg Research , which successfully deflated electric-vehicle maker Nikola Motors in 2020. Adani Group denies the allegations and says the short seller is trying to smear its reputation and derail a public stock offering. Shares of the group’s companies have plunged since Hindenburg’s report, wiping out nearly $64 billion in market value. Hindenburg’s report comes amid a $2.5 billion secondary share sale by Adani Enterprises that closes on Tuesday.

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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