Adani Stock Wipeout Deepens to $104 Billion After Flagship Firm Pulls Share Sale

[letsrock]

Firstly, only one of the cases in your graphic is a CBI case. There is a big difference between CCI and CBI.

There were allegations of siphoning off funds against GVK group which is why CBI and ED investigated them. The CBI is now prosecuting this case in court. If there had really been a quid pro quo the cases would have been dropped by now.

CCI is the Competition Commission of India and almost all cement companies, not just ACC and Ambuja, in that regional market were raided for suspected cartelisation, which is illegal in almost all countries. I know from my personal interactions with senior cement industry executives several years ago that this is quite a common practice, especially when the industry is over-supplied ( it is a highly cyclical industry since capacity can only be added or suntracted in big chunks) . They euphmemistically call it " co-operation". In any case those companies were not owned by some first gen entrepreneur but by Holcim Cement, which is a European company and has been exiting all its international businesses outside Europe and North America to cut its carbon footprint. I hope you don't seriously believe one of the biggest multinationals in the world based in France/Switzerland got shaken down by Adani and kept quiet about it.

He is not a relative of Modi. Have you considered the possibility that you have got the cause and effect wrong ? Maybe he is favoured by Modi because he is successful not the other way round. Modi is the antithesis of nepotism. The reason fingers are pointed at Adani is because no one can find anything related to corruption to pin on Modi, his family or his cabinet personally. If Modi has not given a single favour to his blood relatives , why will he go out of his way for Adani ?

Lot of interestinf "ifs" and maybe's . GVK son came to media recently "clarifying" he was not forced to sell. Maybe CBI will drop. How many years do they take to prosecute these cases ?

It is interesting the real builders of india - like GVK which built the beautiful mumbai airport or cement manufactures ALL seem to be corrupt . And Adani who barely builds anything but takes away what others have built with their sweat has managed to line up prime public institution funds.

Why would LIC invest in Adani gas with a peak p/e multiple near 1000? don't public institutions have any norms in india ?

Not relative of Modi is a cynical thing you are saying. he is a gujrati like modi - nothing wrong with gujratis having a bond. But its coming at cost of "india" and playing a joke on indian money,

 

[siegecrossbow]

Adani crisis deepens with Moody's downgrades and index weighting cuts

Moody's downgraded on Friday the ratings outlook for some Adani Group companies, while MSCI said it would cut the weightings of some in its stock indexes, the latest blows for the Indian conglomerate plunged into crisis by a short-seller's report.

www.reuters.com

 

[Paji]

Pp l.Maybe CBI will drop. How many years do they take to prosecute these cases ?

There is a process. First there is an investigation and only then cases are filed in court. The legal process in India can be slow especially if cases are slow. Even open and shut cases like the assassinations of Indira and Rajiv Gandhi took years to finally conclude.

It is interesting the real builders of india - like GVK which built the beautiful mumbai airport or cement manufactures ALL seem to be corrupt . And Adani who barely builds anything but takes away what others have built with their sweat has managed to line up prime public institution funds.

Corruption has not yet been proven against GVK. Only cases have been filed based on prima facie evidence. Courts will decide whether they are corrupt or not. Adani group is also being investigated. If evidence of illegality is found against them, I am sure they will also be prosecuted and given the chance to prove their innocence in court.
LIC, SBI and other public institutions have invested or lent money to Adani companies. So have international investors like Goldman Sachs, Morgan Stanley, Citi, Barclays, Deutsche Bank, Maybank , Abu Dhabi Investment Authority and many others . LIC is taking the same risks as some of the world's best regarded investors. There is nothing wrong with it. Until recently, there was a mad rush of international investors who wanted exposure to Adani. In fact, being an early investor LIC's investments in Adani companies have been some of its most profitable ones .

he is a gujrati like modi - nothing wrong with gujratis having a bond

Anil Ambani is also Gujarati. He used to be one of the richest men in the world and now he has declared his net worth to be zero and is facing many court cases. Other cases are also going on against other Gujarati businessman who had shady dealings. Adani is also being investigated and if proof is found, he will also be prosecuted, but just being successful or having a good relationship with Modi is not a crime.

 

[sutton999]

How vulnerable top structure of India is. Anglo launch a whip via a short sale report and a BBC documentary.

 

[SeaMermaid]

Why Adani’s $100 Billion Loss Hasn’t Tanked India’s Markets

The steadfastness of India’s economy attests to the size and seeming strength of the country’s broader business landscape.

www.nytimes.com

India’s main market index is nearly 2.5 percent above where it stood a year ago, even as U.S. stocks have fallen by more than 4 percent during the same period.
The steadfastness attests to the size and seeming strength of the broader Indian business landscape. Adani fell spectacularly after it was accused of fraud and stock manipulation by a small New York trading firm, but the debacle is barely a splash from the big Indian bucket. India is now home to about 1.5 million companies and a well-capitalized stock market: Its National Stock Exchange fluctuated comfortably between $3 trillion and $3.5 trillion last year.


While calling the Adani Group “the largest con in financial history,” Hindenburg Research, the New York investment firm, itself sounded a bullish note on India proper, calling it “an emerging superpower with an exciting future.”

-----------------------------------

India has 530 companies (listed companies and unlisted startups) with more than a billion dollars in Market cap, while there is just 1 (OGDC) in Pakistan that too at just $1.6 billion.

The largest Bank in Pakistan generates less revenue than DMRC which is the company that runs the Delhi Metro Rail (Public transportation).

@INDIAPOSITIVE @pikkuboss @indushek @StraightEdge @my2cents @Skull and Bones @kaykay @Indos @Suriya @surmabhopali

 

[Ali_Baba]

Given the general levels of corruption and crony capatalism in South Asia in general - would be interesting to see how many more Adani type scandals are lurking around the corner. Quite a few i imagine..

 

[datafreak]

Given the general levels of corruption and crony capatalism in South Asia in general - would be interesting to see how many more Adani type scandals are lurking around the corner. Quite a few i imagine..

Of course there's quite a few of them lurking around. Won't destrioy the economy if they come out, if more short sellers take positions, then the much needed corrective will come.

 

[StraightEdge]

Moody's Investors Service revised the ratings outlook of four Adani Group companies to ‘Negative’ on Friday, while retaining a ‘Stable’ outlook on four other Group companies. US-based rating giant has downgraded the ratings outlook to ‘negative’ from ‘stable’ for Adani Green Energy (NS:ADNA), Adani Green Energy Restricted Group (AGEL RG-1), Adani Electricity Mumbai and Adani Transmission (NS:ADAI) Step-One (ATSOL).

Moody’s Revises Ratings Outlook on 4 Adani Cos to ‘Negative’ from ‘Stable’ - Investing.com India

 

[mulj]

Moody's Investors Service revised the ratings outlook of four Adani Group companies to ‘Negative’ on Friday, while retaining a ‘Stable’ outlook on four other Group companies. US-based rating giant has downgraded the ratings outlook to ‘negative’ from ‘stable’ for Adani Green Energy (NS:ADNA), Adani Green Energy Restricted Group (AGEL RG-1), Adani Electricity Mumbai and Adani Transmission (NS:ADAI) Step-One (ATSOL).

Moody’s Revises Ratings Outlook on 4 Adani Cos to ‘Negative’ from ‘Stable’ - Investing.com India

So, no money from international lenders. Shortsizinig and selling companies then.

 

[letsrock]

There is a process. First there is an investigation and only then cases are filed in court. The legal process in India can be slow especially if cases are slow. Even open and shut cases like the assassinations of Indira and Rajiv Gandhi took years to finally conclude.

Corruption has not yet been proven against GVK. Only cases have been filed based on prima facie evidence. Courts will decide whether they are corrupt or not. Adani group is also being investigated. If evidence of illegality is found against them, I am sure they will also be prosecuted and given the chance to prove their innocence in court.
LIC, SBI and other public institutions have invested or lent money to Adani companies. So have international investors like Goldman Sachs, Morgan Stanley, Citi, Barclays, Deutsche Bank, Maybank , Abu Dhabi Investment Authority and many others . LIC is taking the same risks as some of the world's best regarded investors. There is nothing wrong with it. Until recently, there was a mad rush of international investors who wanted exposure to Adani. In fact, being an early investor LIC's investments in Adani companies have been some of its most profitable ones .


Anil Ambani is also Gujarati. He used to be one of the richest men in the world and now he has declared his net worth to be zero and is facing many court cases. Other cases are also going on against other Gujarati businessman who had shady dealings. Adani is also being investigated and if proof is found, he will also be prosecuted, but just being successful or having a good relationship with Modi is not a crime.

LoL - arguing that indian justice system is slow but conscientitous. In your original post you spoke admiringly about Adani being "first gen businessman".

Well so was GVK and unlike Adani he actually built the airport. But indian state humiliated him with a raid and a case that continues for years without any justice.

Probably GVK is "lesser" indian to you. And your admiration of Adani is clearly political.And most indian patriotism is basically a variation of it - calling their casteism and political affiliation as patriotism.

 

[Hakikat ve Hikmet]

The Imperialists are damn fast in punishing, but dead slow in rewarding. India was playing with the tale of the lion.....

 

[Paji]

LoL - arguing that indian justice system is slow but conscientitous. In your original post you spoke admiringly about Adani being "first gen businessman".

Well so was GVK and unlike Adani he actually built the airport. But indian state humiliated him with a raid and a case that continues for years without any justice.

Probably GVK is "lesser" indian to you. And your admiration of Adani is clearly political.And most indian patriotism is basically a variation of it - calling their casteism and political affiliation as patriotism.

Looks like you are projecting your own insecurities and ignorance on to others. I don't have any admiration for Adani, but it is a fact that in India, more than in the developed world, building a business from scratch as a first generation entrepreneur required connections and jugaad, so I don't expect first generation companies to have the same level of corporate governance as the Tatas, for example. It was easier for Mukesh Ambani ( though his brother Anil still managed to squander away his) to build on the legacy that his father left him than for Adani to build from scatch.

There are also glaring factual inaccuracies in your post. Sanjay Reddy is not a first gen entrepreneur. Even his father, GVK, inherited the construction business and built it up. GVK built Mumbai airport ? LOL. It has been around since the 1940s. GVK was just the major consortium partner when the management and operation of the airport was privatised. Cases were filed against GVK in 2020 and are already in court. It is not an unusual delay. For reference, Vijay Mallya fled India in 2016 and the UK has still not extradited him back despite a UK court order almost 3 years ago. Unlike many other Indian businessmen facing fraud allegations, who are in prison or in exile, the Reddys have been living large in India.

By the way, the Reddys are from the warrior Vokkaliga caste and are considered superior in the caste hierarchy to the baniya Adanis. I am from a forward caste as well, so, if I were being casteist I would have supported GVK.

I don't have any opinion on whether GVK was actually engaged in fraud. The courts will decide that. Similarly, I favour a full investigation of the Adani group, which is already being carried out, and for them to be prosecuted if any illegality emerges. If something does come out, it is not likely to be related to buying of the GVK stake but one of the issues raised by the Hindenburg report ( who have done an excellent job , by the way). I don't really a dog in the fight. I used to own some Adani shares but sold them at a healthy profit a few months back as valuations being too frothy.

 

[letsrock]

Looks like you are projecting your own insecurities and ignorance on to others. I don't have any admiration for Adani, but it is a fact that in India, more than in the developed world, building a business from scratch as a first generation entrepreneur required connections and jugaad, so I don't expect first generation companies to have the same level of corporate governance as the Tatas, for example. It was easier for Mukesh Ambani ( though his brother Anil still managed to squander away his) to build on the legacy that his father left him than for Adani to build from scatch.

There are also glaring factual inaccuracies in your post. Sanjay Reddy is not a first gen entrepreneur. Even his father, GVK, inherited the construction business and built it up. GVK built Mumbai airport ? LOL. It has been around since the 1940s. GVK was just the major consortium partner when the management and operation of the airport was privatised. Cases were filed against GVK in 2020 and are already in court. It is not an unusual delay. For reference, Vijay Mallya fled India in 2016 and the UK has still not extradited him back despite a UK court order almost 3 years ago. Unlike many other Indian businessmen facing fraud allegations, who are in prison or in exile, the Reddys have been living large in India.

By the way, the Reddys are from the warrior Vokkaliga caste and are considered superior in the caste hierarchy to the baniya Adanis. I am from a forward caste as well, so, if I were being casteist I would have supported GVK.

I don't have any opinion on whether GVK was actually engaged in fraud. The courts will decide that. Similarly, I favour a full investigation of the Adani group, which is already being carried out, and for them to be prosecuted if any illegality emerges. If something does come out, it is not likely to be related to buying of the GVK stake but one of the issues raised by the Hindenburg report ( who have done an excellent job , by the way). I don't really a dog in the fight. I used to own some Adani shares but sold them at a healthy profit a few months back as valuations being too frothy.

GVK built the iconic terminal 2 in mumbai airport . Now that the bluff is called you started lying that they did not build the airport.

You make no sense except twisting and bending logic to cook up stories. I didnt bring up caste but since you bought up it is clear you are a brahmin. Just remember the world is not your temple where you can cook up any kind of stories and defraud "devotees".

Also some unknown firm in NYC managed to make a 100 billion dollar hit on india's most powerful and politically connected businessmen. Then where and what is power of india ?

 

[Paji]

GVK built the iconic terminal 2 in mumbai airport . Now that the bluff is called you started lying that they did not build the airport

Lol. The second terminal always existed. It used to be called Sahar and I had taken many flights in and out of there long before GVK was involved with the Mumbai airport.Yes, GVK did substantially upgrade it as part of the commercial agreement with the government, but it is not the case that GVK took a huge risk building a greenfield airport at a location with unknown passenger traffic and when they succeeded in this uncertain venture, Adani came along and stole their baby. They definitely took on execution risk but the business risk was mitigated by the fact that the airport had a captive passenger base .

And most indian patriotism is basically a variation of it - calling their casteism and political affiliation as patriotism.

I didnt bring up caste

LoL. Just Lol.

Also some unknown firm in NYC managed to make a 100 billion dollar hit on india's most powerful and politically connected businessmen. Then where and what is power of india ?

Hindenburg is not some unknown firm, at least to those who follow the US stock market, and on the face of it the work they have done seems well researched. Perhaps you should read it. It is freely available on their website. I definitely agree with their conclusion that Adani shares were over-priced, which is why i had sold those I owned a few months back. While many of their other conclusions are subject to debate in the absence of proof, they do not make any stupid claims like the Indian government put a gun on Sanjay Reddy's head to force him to handover Mumbai airport to Adani for free. GVK and the South African company both divested their stakes in the airport management company on mutually agreeable commercial terms. GVK was the more desperate seller because they were on the verge of defaulting on other loans if they hadn't raised funds. The other investors they were talking to had pulled out and only Adani was crazy enough to make a huge investment at a time ( peak of covid shutdown) when most investors were in a cautious capital preservation mode. Maybe Adani would have had to pay more for that stake today because air traffic is back to normal and covid is in the rear view mirror, but at that time there was no knowing how long covid would keep air traffic shut and he was taking a huge risk, so you can't blame anyone except the desperate seller if the asset was sold a little cheap.

I know there are some ignorant people in India who conflate the Adani group with the "power of India", but they are just a very vocal minority - just like the shrill youthiya keyboard warriors in Pakistan. Adani failing would be as much as India failing as Tesla or even Enron failing would imply the failure of the entire United State or the failure of Alibaba or Huawei implying the failure of China. Sure, it would make some institutions look bad, but the country will move on. Adani is not some saint but a very shrewd businessman, so it is obvious he would have tried to exploit any advantage he can. That does not mean the Indian government will backstop any fraud by him. Adani firms are already being investigated and Gautam Adani is paying the price for some of his bold risks not working out. But that is what happens in a market economy. Not all risks works out. In fact , the jury is still out even on the Mumbai airport deal. Adani is also developing the second Mumbai airport as a greenfield project ( unlike GVK which just upgraded the second terminal). If their projection about passenger traffic in the Mumbai region turns out to be over-optimstic or if another challenger airport in Pune or Ahmedabad takes traffic away, Adani will face huge losses.

CBI registering cases on real first gen businessmen who actually built these airports

It is interesting the real builders of india - like GVK which built the beautiful mumbai airport or cement manufactures

Now that the bluff is called you started lying that they did not build the airport.

Lol, which one of us is "lying" ? The cement companies were acquired from Holcim, a multinational which itself acquired them from the Indian companies and you yourself have acknowledged the airport always existed and was upgraded by GVK not "built". And neither Sanjay Reddy nor even his father is a first gen businessman. Lol.

Anyway, I have had enough arguments in my life to know I can't defeat a troll. So, I am resting my case and putting you on ignore. You are free to rant unchallenged henceforth. Good luck to you.

 

[letsrock]

Lol. The second terminal always existed. It used to be called Sahar and I had taken many flights in and out of there long before GVK was involved with the Mumbai airport.Yes, GVK did substantially upgrade it as part of the commercial agreement with the government, but it is not the case that GVK took a huge risk building a greenfield airport at a location with unknown passenger traffic and when they succeeded in this uncertain venture, Adani came along and stole their baby. They definitely took on execution risk but the business risk was mitigated by the fact that the airport had a captive passenger base .




LoL. Just Lol.



Hindenburg is not some unknown firm, at least to those who follow the US stock market, and on the face of it the work they have done seems well researched. Perhaps you should read it. It is freely available on their website. I definitely agree with their conclusion that Adani shares were over-priced, which is why i had sold those I owned a few months back. While many of their other conclusions are subject to debate in the absence of proof, they do not make any stupid claims like the Indian government put a gun on Sanjay Reddy's head to force him to handover Mumbai airport to Adani for free. GVK and the South African company both divested their stakes in the airport management company on mutually agreeable commercial terms. GVK was the more desperate seller because they were on the verge of defaulting on other loans if they hadn't raised funds. The other investors they were talking to had pulled out and only Adani was crazy enough to make a huge investment at a time ( peak of covid shutdown) when most investors were in a cautious capital preservation mode. Maybe Adani would have had to pay more for that stake today because air traffic is back to normal and covid is in the rear view mirror, but at that time there was no knowing how long covid would keep air traffic shut and he was taking a huge risk, so you can't blame anyone except the desperate seller if the asset was sold a little cheap.

I know there are some ignorant people in India who conflate the Adani group with the "power of India", but they are just a very vocal minority - just like the shrill youthiya keyboard warriors in Pakistan. Adani failing would be as much as India failing as Tesla or even Enron failing would imply the failure of the entire United State or the failure of Alibaba or Huawei implying the failure of China. Sure, it would make some institutions look bad, but the country will move on. Adani is not some saint but a very shrewd businessman, so it is obvious he would have tried to exploit any advantage he can. That does not mean the Indian government will backstop any fraud by him. Adani firms are already being investigated and Gautam Adani is paying the price for some of his bold risks not working out. But that is what happens in a market economy. Not all risks works out. In fact , the jury is still out even on the Mumbai airport deal. Adani is also developing the second Mumbai airport as a greenfield project ( unlike GVK which just upgraded the second terminal). If their projection about passenger traffic in the Mumbai region turns out to be over-optimstic or if another challenger airport in Pune or Ahmedabad takes traffic away, Adani will face huge losses.





Lol, which one of us is "lying" ? The cement companies were acquired from Holcim, a multinational which itself acquired them from the Indian companies and you yourself have acknowledged the airport always existed and was upgraded by GVK not "built". And neither Sanjay Reddy nor even his father is a first gen businessman. Lol.

Anyway, I have had enough arguments in my life to know I can't defeat a troll. So, I am resting my case and putting you on ignore. You are free to rant unchallenged henceforth. Good luck to you.

really ? there is no comparision to second terminal built later to one before. You are just another brahmin troll who has contempt for those who work but develop complex buffoonery type logic to advance laughable claims .

Yea market risk for developing solar power/running ports and airports - really ? In china all these are developed by govt companies. there is no market risk there - no chance of hindenburg running a scam on them.

Now your adani is hiring the most expensive legal firm in us to defend yourself. Recently your ambani daughter or daughter in law delivered her babies in us with passports in hand. thats what your wealthy do and frankly thats what you will do too - sell out india as much as you can in the name of patriotism and nationalism.