Sell-off in India's Adani deepens to $50 billion

[Paitoo]

Kashmiri (now) muslim (but formerly) Dharmi/Pandit is a thing.. they keep their old name. Been a few insurgents/rebels with that name over the years too

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

Kashmir's disturbing new reality | the young militants of Kashmir

A new breed of militants is rising in Kashmir -- young, educated, tech-savvy.

www.hindustantimes.com

I know some 'pandit' muslims from there too, friends of mine.

Iqbal's family too were Kashmiri Pandits I believe.

 

[walterbibikow]

Why don't we issue a call for Global investors to all come invest in India now ?

আপনার অভিশাপ ভারত এবং এর অর্থনীতিতে শূন্য প্রভাব ফেলবে। আমরা আপনার জিডিপির চেয়ে বড় স্কেলে বিদেশী বিনিয়োগ আকৃষ্ট করতে থাকব। বিশ্বব্যাপী এর উত্থান বন্ধ করার জন্য আমাদের দেশের বিরুদ্ধে যে ষড়যন্ত্র করা হয়েছে তা আর দীর্ঘস্থায়ী হবে না।

 

[-=virus=-]

But NS does not call himself a brahmin or a pandit, does he ?

No, he's proper Muslim afaik.. I wasn't even aware he was of Kashmiri Pandit lineage or ancestry.

Iqbal's family too were Kashmiri Pandits I believe.

Not very well read on Iqbal but it may well have been.

We have @Zibago on here who's granps converted to Islam, he's Kashmiri proper iinw.

 

[kingQamaR]

If he has 125 billion dollars why is he wasting his time (and money) raising a measly 2.5 billion dollars? It doesn't make sense unless you accept that it is just a ponzi scheme. Last month there was a programme a similar con. Billion just disappeared.

 

[Hecig]

If he has 125 billion dollars why is he wasting his time (and money) raising a measly 2.5 billion dollars? It doesn't make sense unless you accept that it is just a ponzi scheme. Last month there was a programme a similar con. Billion just disappeared.

There is a difference between Assets and Liquid capital.

I may own a home worth 1 million $, but can still have a bank balance of just 1,000 $.

Doe not mean I am running a ponzi scheme.

 

[Pranaayam]

There is a difference between Assets and Liquid capital.

I may own a home worth 1 million $, but can still have a bank balance of just 1,000 $.

Doe not mean I am running a ponzi scheme.

It is very hard to explain basics to Pakistanis. No wonder their economy is sinking.

 

[Bilal9]

Fraud cannot be obfuscated by nationalism​

Says Hindenburg, rejects Adani charge

Star Digital Report

Mon Jan 30, 2023 08:48 PM Last update on: Mon Jan 30, 2023 08:49 PM

Indian billionaire Gautam Adani addresses delegates during the Bengal Global Business Summit in Kolkata, India April 20, 2022. Photo: Reuters

Indian billionaire Gautam Adani addresses delegates during the Bengal Global Business Summit in Kolkata, India April 20, 2022. Photo: Reuters

US short-seller Hindenburg Research has dismissed charge that its report on Adani Group's malfeasance was a "calculated attack" on India, saying a "fraud" cannot be "obfuscated by nationalism or a bloated response that ignored key allegations."

Adani group's listed companies have lost over USD 70 billion since the January 24 report of the New York firm that flagged high debt levels at the ports-to-energy conglomerate and the alleged use of offshore entities in tax havens. The Indian group has denied all charges and threatened to sue the US firm.

Hindenburg responded to a 413-page detailed statement issued by the Adani Group late on Sunday, saying it failed to specifically answer 62 of its 88 questions, and conflated the company's "meteoric rise" and the wealth of Asia's richest man "with the success of India itself", reports our New Delhi correspondent.

In the Sunday evening statement, Adani group had called Hindenburg "Madoffs of Manhattan" and that its report was "not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India."

Standing by its report that alleged "fraud" at the second largest conglomerate in India run by the world's then-third richest man, Hindenburg said it disagrees with Adani group's assertion of its report being an attack on India.

"To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future," it said. "We also believe India's future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation."

A "fraud is fraud, even when it's perpetrated by one of the wealthiest individuals in the world," it said, adding, "Adani also claimed we have committed a 'flagrant breach of applicable securities and foreign exchange laws'. Despite Adani's failure to identify any such laws, this is another serious accusation that we categorically deny."

Adani's 413 page response only included about 30 pages focused on issues related to the report and the remainder consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on "irrelevant" corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables.

On Sunday evening, Adani group said the Hindenburg report was intended to enable the US-based short seller to book gains by crashing stock prices.

The report had come just as a Rs 20,000-crore share sale at the group's flagship company, Adani Enterprises, opened to anchor investors.

"All transactions entered into by us with entities who qualify as 'related parties' under Indian laws and accounting standards have been duly disclosed by us," it had said late on Sunday. "This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors." Hindenburg reiterated that it was short on the Adani group through US traded bonds and non-Indian-traded derivative instruments.

In the January 24 report, it had called out the conglomerate's "substantial debt", which includes pledging shares for loans; that Adani's brother Vinod "manages a vast labyrinth of offshore shell entities" that move billions into group companies without required disclosure; and that its auditor "hardly seems capable of complex audit work".

Hindenburg said it "found Adani's lack of direct and transparent answers" on the allegations of use of offshore entities "telling".

 

[nahtanbob]

LOL. "Admit the truth" ? what "Truth" ?

I have asked you to provide proof of you claims and all you could do was claim "history will judge"

Meanwhile in the real world, THIS happens.

Adani Gets Backing as UAE Royals Buy $400 Million in Share Sale​

And here is the 413 pages, Adani's reponse to Hindenburg report.

Adobe Acrobat

acrobat.adobe.com

UAE Royals are despots. They invest their money where they deem fit. They need to make foreign investments. India is one of the targets. It means nothing

There is nothing Adani does that justifies the remotely lofty valuations. Hence the attention from short sellers.

I wouldn't suspect Adani winning a lot of airport and port development contracts as evidence of hanky panky. The bidding system is quite sophisticated and bids are sealed using digital signatures. From my own experience of being part of bids in other companies, I would say that the system cannot be manipulated. The big deal in these kinds of projects is not the bid itself, but what is known in the industry as financial closure - the ability to conclude funding for the project. It is here that one could say Adani's ability to raise capital is quite spectacular, given that large infra projects are not a very good collateral, and are worth anything only when completed to cost. Unlike say a plant and machinery loan where the individual assets can be seized and salvaged.

For those who are not aware, there is a precedent for GOI trying to diversify the execution risk. When GMR group won the bids to develop both Delhi and Mumbai airports, it was asked to choose one, because both couldn't be given to the same company. GMR chose to keep Delhi and GVK got Mumbai as the second highest bidder. Keeping this in mind, Adani being allowed to keep 8 airports does look surprising. They may complete all successfully but that will be a redemption in hindsight. The principle of risk diversification should have been applied ex-ante.

Please ... he has no expertise managing airports and given 8 of them

Airports and ports are great collateral. But even if Adani defaults to a foreign lender Indian government is not going to let foreign lender seize critical infrastructure like airports or ports

 

[nahtanbob]

India is bigger than any one individual. No matter how big he becomes, he can't match our collective might. INDIA is a democracy after all.

He is just being attacked because he is the most important backer of Modi from industry. Any new policy that government comes say be it chips manufacturing, port development, green hydrogen, solar manufacturing, renewable energy etc, he puts his hand up in support of Modi.

Left liberals just can't digest that as it means GOI policy is working. I hope GOI support him as much as it can and sure I perceive it to be an attack on India.

there is plenty of history on state backed conglomerates . Look at South Korea, Latin America, China.

All you have done is to take poorly run state enterprises like airports and ports and put it in a private tycoon's hand. I hope it works out, Given Adani's track record there is a good chance it won't

Most modern airports have seamless WiFi. This is the track record on Adani's airport.

Is there free wifi in the Mumbai airport (BOM)?

Answer (1 of 7): For a large airport in Mumbai with world class terminal design like the John F Kennedy Airport in New York City, the wifi facilities are pathetic. Unlike JFK, where it is free for as much time as one wants to use, in Mumbai, it is free only for 45 minutes, and most of the time it...

www.quora.com

 

[Hecig]

UAE Royals are despots. They invest their money where they deem fit. They need to make foreign investments. India is one of the targets. It means nothing

There is nothing Adani does that justifies the remotely lofty valuations

Even "despots" have Financial Advisors who advice them on Sound investments.

Rather than blame the Royals, Go blame your credit agencies who has deemed Adani worthy of investment.

Please ... he has no expertise managing airports and given 8 of them

Airports and ports are great collateral. But even if Adani defaults to a foreign lender Indian government is not going to let foreign lender seize critical infrastructure like airports or ports

Adani is already successfully operating Airports for the last years.

And Adani do not "OWN" these aiports, they just have righhts to Develop and Manage the airports.

So NO, they cannot pledge these as "collaterals".

OTOH Adani Ports and Special Economic Zone's net debt is 3.4 times its EBITDA, which is a significant but still reasonable amount of leverage.

Also they are funded by Bonds, not loans.

Bonds issued by company	Yield (%)	Last Traded Price ()
Adani Ports & Special Economic Zone Ltd 9.35% FITCH AA+/Stable	9.35	--
Adani Ports & Special Economic Zone Ltd 9.35% ICRA AA+	9.35

there is plenty of history on state backed conglomerates . Look at South Korea, Latin America, China.

All you have done is to take poorly run state enterprises like airports and ports and put it in a private tycoon's hand. I hope it works out, Given Adani's track record there is a good chance it won't

Most modern airports have seamless WiFi. This is the track record on Adani's airport.

Is there free wifi in the Mumbai airport (BOM)?

Answer (1 of 7): For a large airport in Mumbai with world class terminal design like the John F Kennedy Airport in New York City, the wifi facilities are pathetic. Unlike JFK, where it is free for as much time as one wants to use, in Mumbai, it is free only for 45 minutes, and most of the time it...

www.quora.com

Rubbish, Adani has yet to fail in ANY sector he has stepped into.

His success ratio is 100%.

So your spiteful ill-wishes will just remain that, wishes.

And users can purchase high speed WiFi in Mumbai airport. Why are they entitled to free WiFi ?

Especially considering how much stress the aviation sector has been during and post CoVid.

 

[nahtanbob]

And users can purchase high speed WiFi in Mumbai airport. Why are they entitled to free WiFi ?

Especially considering how much stress the aviation sector has been during and post CoVid.

You need to ask yourself that question in particular and in general regarding infrastucture

 

[Hecig]

You need to ask yourself that question in particular and in general regarding infrastucture

When we do, NO ONE in India will shed tears for people in airports having to pay for high speed WiFi.

OTOH that allows the govt. to do THIS,

Free Wi-fi now available at 6,100 railway stations across India: RailTel​

The Wi-fi is ‘free’ for the first 30 min of usage every day at 1 mbps speed. For using the Wi-Fi facility further at ‘higher’ speed beyond 30 minutes, the user needs to choose a plan with higher speed by paying a nominal fee. The plans vary from Rs. 10/day (for 5 GB @ 34 MBPS) to Rs. 75/30 day (for 60 GB @ 34 MBPS) excluding GST.

 

[Bilal9]

City of London welcomes Adani & Family

 

[Paitoo]

Please ... he has no expertise managing airports and given 8 of them

By this logic you will always have the same companies operating airports all the time. How is that any better? At the time of bidding you are supposed to demonstrate ability to execute infrastructure projects of a certain value, not necessarily airports.

In 2006 India did not have any capability to build or run large, efficient airports. We had to contend with Soviet style AAI ones. At that time it was felt necessary to have at least one partner in the consortium with 26% stake who was a previous airport operator. Hence GMR had Fraport and GVK had ACSA. These partners brought in the required technical score for the bid. They were allowed to exit after a certain number of years once the operations had stabilised, which they did.

Fast forward 10 years, we had no requirement for foreign expertise. We were experts at developing airports. Last I knew GMR developed airports in Phillippines, Turkey, Greece, Maldives among others.

Please understand that when an airport is taken over, most of the staff comes along with it. Only the stubborn babu types are dealt with strictly. Even that was the case in the initial era of PPP projects. Now all the airports have new blood and do not require disciplining. So when Adani acquired the airport from GVK, it acquired all the staff as well, who have deep experience of running an airport.

Anyway, I have mentioned in my earlier post that giving 8 airports to one entity is not good. GOI should have diversified. Companies with too much rapid exposure to new projects are at risk. I hope Adani sees the projects through otherwise we will have an endless saga of cost escalations, underhand deals and banks and retail investors left holding the lemon. There is too much stress in society already, we don't need to worry about our banks struggling.

 

[kingQamaR]

Fraud cannot be obfuscated by nationalism​

Says Hindenburg, rejects Adani charge

Star Digital Report

Mon Jan 30, 2023 08:48 PM Last update on: Mon Jan 30, 2023 08:49 PM

Indian billionaire Gautam Adani addresses delegates during the Bengal Global Business Summit in Kolkata, India April 20, 2022. Photo: Reuters

Indian billionaire Gautam Adani addresses delegates during the Bengal Global Business Summit in Kolkata, India April 20, 2022. Photo: Reuters

US short-seller Hindenburg Research has dismissed charge that its report on Adani Group's malfeasance was a "calculated attack" on India, saying a "fraud" cannot be "obfuscated by nationalism or a bloated response that ignored key allegations."

Adani group's listed companies have lost over USD 70 billion since the January 24 report of the New York firm that flagged high debt levels at the ports-to-energy conglomerate and the alleged use of offshore entities in tax havens. The Indian group has denied all charges and threatened to sue the US firm.

Hindenburg responded to a 413-page detailed statement issued by the Adani Group late on Sunday, saying it failed to specifically answer 62 of its 88 questions, and conflated the company's "meteoric rise" and the wealth of Asia's richest man "with the success of India itself", reports our New Delhi correspondent.

In the Sunday evening statement, Adani group had called Hindenburg "Madoffs of Manhattan" and that its report was "not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India."

Standing by its report that alleged "fraud" at the second largest conglomerate in India run by the world's then-third richest man, Hindenburg said it disagrees with Adani group's assertion of its report being an attack on India.

"To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future," it said. "We also believe India's future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation."

A "fraud is fraud, even when it's perpetrated by one of the wealthiest individuals in the world," it said, adding, "Adani also claimed we have committed a 'flagrant breach of applicable securities and foreign exchange laws'. Despite Adani's failure to identify any such laws, this is another serious accusation that we categorically deny."

Adani's 413 page response only included about 30 pages focused on issues related to the report and the remainder consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on "irrelevant" corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables.

On Sunday evening, Adani group said the Hindenburg report was intended to enable the US-based short seller to book gains by crashing stock prices.

The report had come just as a Rs 20,000-crore share sale at the group's flagship company, Adani Enterprises, opened to anchor investors.

"All transactions entered into by us with entities who qualify as 'related parties' under Indian laws and accounting standards have been duly disclosed by us," it had said late on Sunday. "This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors." Hindenburg reiterated that it was short on the Adani group through US traded bonds and non-Indian-traded derivative instruments.

In the January 24 report, it had called out the conglomerate's "substantial debt", which includes pledging shares for loans; that Adani's brother Vinod "manages a vast labyrinth of offshore shell entities" that move billions into group companies without required disclosure; and that its auditor "hardly seems capable of complex audit work".

Hindenburg said it "found Adani's lack of direct and transparent answers" on the allegations of use of offshore entities "telling".

Patriotism is the last refuge of the scoundrel

It is very hard to explain basics to Pakistanis. No wonder their economy is sinking.

In a country where Indian people die from poverty this is an utter disgrace.