Adani Group's loss swells to $65 billion; Hindenburg responds to charges

[Bossman]

Indian gov will have to decide on Adani bailout by the end of next week.

A $65 billion bailout or $65 billion scam

 

[casual]

I have read it. Its only accusations about his business is that he does stock manipulation through shell companies. But point remains same...what now? Storm is gone. Most of his stocks are stabilised now.. Majority started moving up again. As I said even after recent dip, he is still sitting at 200 billion USD with hardly 25 billion as debt i.e 12-13%. He is going nowhere.

Stock manipulation AND accounting Freud.

 

[Sharma Ji]

that's one srsly unhappy pajeet !

 

[nahtanbob]

I have read it. Its only accusations about his business is that he does stock manipulation through shell companies. But point remains same...what now? Storm is gone. Most of his stocks are stabilised now.. Majority started moving up again. As I said even after recent dip, he is still sitting at 200 billion USD with hardly 25 billion as debt i.e 12-13%. He is going nowhere.

What exactly is $200 billion ?

 

[Imran Khan]

https://twitter.com/x/status/1620839897174085632

 

[nahtanbob]

Stock manipulation AND accounting Freud.

stock manipulation for sure
accounting fraud maybe

 

[TriptiD]

While there is definitely still crony capitalism in India but institutional corruption has definitely gone down a lot during the Modi years. Gautam Adani has been a very successful first generation businessman and in a country like India where the demand for capital for mega infrastructure projects outstrips supply, it is difficult for even honest politicians across political parties to turn down an entrepreneur who is willing to take on projects no one else is.

While Mr Adani's rise was undoubtedly intertwined with Mr Modi's, I dount his downfall will be. State institutions have not stepped up to help him during the recent rout and the Finance Minister has even said it is a company specific problem, not an attack on India. Mr Modi has had an incorruptible image so far and I am sure he will not sacrifice that to save the Adani group.

That said, no illegality or fraud has yet been proven. The main issue is that their shares had been trading at sky high valuations compared to their peers. As that corrects, Mr Adani and equity investors in his group companies have and will undoubtedly lose money. It is not clear that there will any wider systemic contagion or even that the Adani group will have problem paying its debts. In fact they have announced they will prepay some of the loans taken against pledged shares.

 

[nahtanbob]

While there is definitely still crony capitalism in India but institutional corruption has definitely gone down a lot during the Modi years. Gautam Adani has been a very successful first generation businessman and in a country like India where the demand for capital for mega infrastructure projects outstrips supply, it is difficult for even honest politicians across political parties to turn down an entrepreneur who is willing to take on projects no one else is.

While Mr Adani's rise was undoubtedly intertwined with Mr Modi's, I dount his downfall will be. State institutions have not stepped up to help him during the recent rout and the Finance Minister has even said it is a company specific problem, not an attack on India. Mr Modi has had an incorruptible image so far and I am sure he will not sacrifice that to save the Adani group.

That said, no illegality or fraud has yet been proven. The main issue is that their shares had been trading at sky high valuations compared to their peers. As that corrects, Mr Adani and equity investors in his group companies have and will undoubtedly lose money. It is not clear that there will any wider systemic contagion or even that the Adani group will have problem paying its debts. In fact they have announced they will prepay some of the loans taken against pledged shares.

Adani has been accused of stock manipulation. Of course I expect Indian authorities to look the other way

 

[DabbuSardar]

These checks are necessary, as long as free market is allowed to make decisions unhindered, it is all a necessary process.

Free market made the bull market on Adani, let them correct the mistake as well.

For all I care about is my own profit, adam smith and free hand hold true to this day!

 

[iamnobody]

Adani has been accused of stock manipulation. Of course I expect Indian authorities to look the other way

Can some one explain in layman's term what he did?

 

[nahtanbob]

Can some one explain in layman's term what he did?

We do not know what adani did

He is accused of
stock manipulation
accounting fraud

it is easy for Adani to deny stock manipulation (assuming he did not). he did not

 

[iamnobody]

We do not know what adani did

He is accused of
stock manipulation
accounting fraud

it is easy for Adani to deny stock manipulation (assuming he did not). he did not

But what his critics are saying he did.

I don't understand.

 

[JohnyD]

everyone and anyone with basic understanding of share market knew his shares are overvalued but they banked on Adani's BJP link and invested to make quick money, their rational was, Modi will remain in Power for next few years so their investment is safe, but out of no where this report surfaced and rest is present..its all about greed and betting, i dont regret if ppl have lost their hard earned money, they deserved it

 

[iamnobody]

Great video

 

[Libexer]

We do not know what adani did

He is accused of
stock manipulation
accounting fraud

it is easy for Adani to deny stock manipulation (assuming he did not). he did not

US-based investment firm GQG Partners invests USD 1.87 billion in Adani Group
Washington [US], March 3 (ANI): United States boutique investment firm GQG Partners has bought shares worth USD 1.87 billion in four Adani group companies, Reuters reported.

The decision of GQG marks the first major investment in the Adani group since a short-sellers critical report resulted in a stock rout.

GQG took a 3.4 per cent stake in Adani Enterprises for around 662 million, 4.1 per cent in Adani Ports for USD 640 million, 2.5 per cent in Adani Transmission for USD 230 million, and a 3.5 per cent stake in Adani Green Energy for USD 340 million, Reuters reported citing the filing.

Seven listed Adani companies have lost around USD 135 billion in market value since January 24, when Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation. The group, led by Gautam Adani, refuted the allegations. Adani group later called off a USD 2.5 billion share sale.

The development came after Supreme Court asked market regulator SEBI to probe the group for any lapses with respect to public shareholding norms or regulatory disclosures, as per the Reuters report. The Adani Group has been attempting to reassure investors with road shows and calls with bondholders.

Adani group has told creditors that it has secured a USD 3 billion loan from a sovereign wealth fund. US-based GQG has bought shares worth Rs 154.46 billion in four Adani group companies, including the conglomerate’s flagship firm Adani Enterprises, Reuters reported citing a regulatory filing. Adani family trust sold the shares using Jefferies as a broker.

GQG, which is based in Florida, manages USD 88 billion in assets, in global, US and emerging markets equities funds. In early Australian trade, GQG Partners shares witnessed a drop by 2.3 per cent while the S&P/ASX200 witnessed a rise of 0.4 per cent on Friday.