Adani no longer a $100 billion group amid sell-off in shares post Hindenburg's claims
By siliconindia | Monday, 20 February 2023, 03:21:56 PM IST
The market capitalization of the billionaire Gautam Adani-led Adani Group has fallen below $100 billion and dropped more than $135 billion since the explosive Hindenburg Research report was released in late January. The conglomerate's entire mcap has decreased by about $200 billion since reaching a peak of $290 billion in September of last year.
The majority of the group's stocks continued to decline today, with Adani Enterprises, the largest and worst-performing stock in the group, falling as much as 9.4%. Since the US-based short seller report was published on January 24th, Adani Total Gas, which has taken the brunt of the damage, has lost more than three quarters of its value.
Today, Adani Total had reached its limit. Since January 27, it has done so every day, according to statistics from Bloomberg. As the selloff got worse, the stock exchanges changed the daily limit for the stock to 5% from 20%. In Mumbai today, nine of the ten equities of the Adani group fell. Adani Transmission Ltd. and Adani Green Energy Ltd. both fell below their 5% ceilings.
Since Hindenburg's explosive report presented a long list of accusations against the business conglomerate, including fraudulent transactions, poor corporate governance, and share-price manipulation, Adani Group equities have suffered on the stock exchanges. The report was released as Adani Enterprises, the conglomerate's flagship company, opened a follow-on share sale for 20,000 crore.
These accusations have been refuted by The Adani Group, which asserts that it adheres with all legal and disclosure obligations. Today, the ports-to-power conglomerate led by Adani, who was once the richest person in Asia, is attempting to change the narrative with this strategy and assuage uneasy lenders and investors.
Adani and his supporters have been working to undo the damage. Executives have started a series of meetings to appease foreign bondholders, who were solicited by the billionaire for more than $8 billion in investment in recent years, in addition to a drive to portray themselves as responsible borrowers with prepayments and on-time loan payments. According to the Adani Group, its debt of 1.96 lakh crore as of September last year was balanced by its assets and the revenues that all of its businesses were bringing in.
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