Adani Group News: From the stock market to the Parliament… Uproar everywhere, foreign report created furore in Adani’s world
Gautam Adani slipped from third to 16th position
Gautam Adani has reached number 16 in the Forbes list of the world’s rich. He was at the third position in this list on last Tuesday, 24 January 2023. The same night came a report by American shortselling firm Hindenburg which said that the Adani Group had been involved in blatant stock manipulation and account fraud for decades. The report claimed that most of Adani’s companies are in debt. His shares are 85% overvalued. After this 106-page report, the Adani group has suffered a setback of billions of rupees. When the Adani group called this report an agenda against India, Hindenburg responded with an even bigger attack. He said- Adani group is looting the country by wrapping the tricolor.
Adani Group gets $100 billion blow from Hindenburg report
Today’s condition is that shares of 10 out of 10 listed companies of Adani Group have taken a dive. The market cap of the group has fallen by $ 100 billion (about 80 trillion rupees). On the night of January 24, when Hindenburg’s report came, as soon as the stock market opened in the morning, the shares of Adani Group started selling heavily. By the time the market closed, the group’s shares had weakened by 10 percent. The next day Thursday was a stock market holiday on account of Republic Day. The next day when the market opened on Saturday, the trend of decline in the shares of Adani Group continued. On this day the group had to face a fall of up to 20 percent. The next day, Sunday, was again a holiday. When the market opened on Monday, the series of setbacks to the Adani Group continued. When the stock market closed, the shares of seven out of 10 companies of Adani Group had fallen more than before. The situation improved slightly on Tuesday and seven out of 10 shares of the group were trading with a boom.
Closed. Then Wednesday was the country’s budget. The stock market opened with a bumper gain, but closed with a slight rise. On the other hand, the shares of all the companies of Adani Group had crashed again. Then on Thursday, nine out of 10 shares of the group closed with heavy losses. Shares of Adani Enterprises, the flagship company of the group, fell by 26.5 per cent.
Return of the biggest FPO in Indian history
Adani Enterprises announced the withdrawal of its Rs 20,000 crore FPO after the shares of group companies crashed. With the announcement of this decision on Wednesday, Adani Group said that it is going to return the money of the investors. The return of the largest FPO in the history of the country was announced by the chairman of the group, Gautam Adani himself. Adani Enterprises’ FPO witnessed a lull in initial subscription amid the Hindenburg report furore, but the last day, January 31, witnessed heavy buying and the entire bid was bought. Big names emerged among those who bought the FPO. Adani Enterprises had put 4.55 crore shares up for bid in its FPO, against which 4.62 crore shares were subscribed. According to reports, several business friends of Adani put money in the FPO. These included the names of many famous industrialists from Delhi and Gujarat. Besides them, Abu Dhabi’s International Holding Company (IHC) also invested Rs 3,200 crore.
Gautam Adani had to give clarification
Gautam Adani had to give clarification on the decision to withdraw the FPO. He said that due to market volatility, the flagship company of his group had to withdraw the FPO despite getting full subscription. Adani cited ethics to reassure investors on the decision. “Yesterday’s decision to call off the FPO after it was fully subscribed may have surprised many, but considering the volatility in the market yesterday, the board of directors feels it is ethical to continue with the FPO,” he said on Thursday. Than will not be right. He assured investors that the decision will have no impact on current operations and future plans. “We will continue to focus on timely completion of projects,” Adani said. He said that the fundamentals of the company are strong. “Our balance sheet is solid and assets are strong. Our earnings before tax (EBITDA) levels and cash flows have been strong and our debt servicing record is impeccable. We will continue to focus on long term valuation.
Uproar in Parliament, demand for inquiry
The heat of the Hindenburg report on Adani reached the Parliament of the country. The opposition has demanded an inquiry into the Hindenburg Research Report on Adani Enterprises by the Joint Parliamentary Committee (JPC Investigation Of Hindenburg Report On Adain Group). Leader of the Opposition Mallikarjun Kharge said, “We demand an inquiry by the Joint Parliamentary Committee on this issue and will raise this demand in Parliament.” We demand that a JPC should be set up to probe the alleged irregularities. The opposition on Thursday alleged that both Houses of Parliament were adjourned to prevent them from raising the Adani issue. Congress General Secretary Jairam Ramesh said, ‘Both Houses of Parliament were adjourned till 2 pm today as the government asked the joint opposition to investigate the alleged forced investments by LIC, SBI and other public institutions in the Adani group. did not agree to the demand. He said that the government has put the savings of crores of Indians at risk. In Rajya Sabha, Chairman Jagdeep Dhankhar rejected the suspension notices of nine members, including Leader of Opposition Mallikarjun Kharge, leading to sloganeering. The Speaker dismissed the notice.
