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Adani Group Share News Updates: Less than two weeks ago, Gautam Adani was the world's third richest man. New-York based short-seller Hindenburg Research published its report on the Adani Group of companies on January 24 accusing the group of engaging in stock manipulation and accounting fraud over the course of decades. The Adani Group responded to the group and said the report is "a malicious combination of selective misinformation and stale, baseless and discredited allegations". Shares of Adani Enterprises, the flagship company of the ports-to-energy conglomerate, were due to go on sale on January 25 in India's largest-ever secondary share offering. Despite the report, the company went ahead with the FPO launch. The Follow-On Public Offering (FPO) sailed through the initial hiccups and was fully subscribed on January 31. But within a day, the company declared it had cancelled its FPO and would return its investors' money.
From January 24 to February 3, Adani Group companies lost around Rs 9 lakh crore m-cap in seven trading sessions. The total market capitalisation of the Adani Group slipped to Rs 10 lakh crore on February 3 from Rs 19.2 lakh crore as of January 24, the day Hindenburg Research made its report public.
Here are the latest updates on the Adani Group Hindenburg Row:
Indian regulators will do what is required. Sebi should be given time to understand what has happened, FM Nirmala Sitharaman told a news channel.
Congress' Supriya Shrinate tears into ongoing Adani vs Hindenburg row
Congress National Spokesperson Supriya Shrinate said that there hasn’t been a squeak from the Indian regulators on the ongoing Adani Group vs Hindenburg Research row that has led to a rout in the former's stocks. Shrinate questioned BJP’s Dr. Sudhanshu Trivedi on how the Modi government is incentivising India Inc or corporate India by letting one man build monopolies in sectors like ports, airports, food, agriculture, and renewable energy.
Shrinate said during a panel discussion by Business Today Executive Director Rahul Kanwal at the BT Budget Roundtable, “How is the Modi government incentivising corporate India by letting one man build leading monopolies across ports, airports, food, agriculture, and renewable energy? And, look at what that contagion is doing to corporate markets. Look at what that contagion is doing to LIC, look at what that contagion is doing to SBI, and not a squeak from India’s regulators.”
UP discom Madhyanchal Vidyut Vitran Nigam scraps Adani Group’s smart meters bid worth Rs 5,400 cr
Madhyanchal Vidyut Vitran Nigam (MVVNL), Uttar Pradesh's power utility, has cancelled its order to Adani Group to supply smart meters to the electricity distribution company (DISCOM). Under the bid, worth Rs 5,400 crore, the Adani Group was supposed to supply around 7.5 million smart meters to the power distribution company. In a notification dated February 4, the state discom said: “The tender has been cancelled due to unavoidable reasons.” MVVNL had invited the e-tender for the appointment of an Advanced Metering Infrastructure (AMI) service provider for smart prepaid metering in MVVNL. The Adani Group had submitted the lowest bid of Rs 10,000 per smart meter.
Adani Group combined market cap loss touches Rs 9.5 Lakh crore
Shares of most of the Adani group firms ended lower on Monday, with the group companies' combined market capitalisation witnessing a sharp fall of Rs 9.5 lakh crore. At the end of Monday's trading session, six of the 10 Adani group companies ended in the negative territory, with Adani Transmission slipping 10 per cent, while the shares of Adani Total Gas, Adani Power, Adani Green Energy and Adani Wilmar declined 5 per cent each. The market capitalisation of Adani group shares has nearly halved in just eight trading sessions. Just like the fall now, the rise in market value after January 2020 was breathtaking too.
Shares of Adani Enterprises closed for the day at Rs 1,572.40, down 0.74 per cent over its previous close.
Four of the Adani group companies defied the trend and settled in the positive territory with Adani Ports and Special Economic Zone closing higher by 9.46 per cent, Ambuja Cements (up 1.54 per cent), ACC (up 2.24 per cent) and NDTV (up 1.37 per cent).
More Adani Group companies will be announcing their December quarter results this week. Adani Green, Adani Ports, Ambuja Cements, NDTV will announce their Q3 results on Tuesday, Adani Power, Adani Wilmar to announce results on Wednesday and Adani Total Gas on Thursday.
Adani to begin power supply to Bangladesh in March, said energy adviser to Bangladesh Prime Minister. "No change in power purchase agreement with Adani Power," said the official.
Adani Transmission on Monday reported 73% jump in consolidated net profit at Rs 478 crore for the quarter ending December 31, 2022 as against Rs 267 crore in the year-ago period, aided by a one-time income of Rs 240 crore from a regulatory order. The company's revenue rose 16% to Rs 3,037 crore in Q3FY23 as compared to Rs 2,623 crore in the year-ago period.
Bank of Baroda is open to lending to the Adani Group going forward, provided the embattled conglomerate meets all of the bank's underwriting criteria, a top executive at the state-run lender said on Monday.
Investors have been worried about various banks' exposure to the Adani Group ever since US-based short-seller Hindenburg Research alleged improper use of offshore tax havens and stock manipulation by the conglomerate.
The State Bank of India, IndusInd Bank, Punjab National Bank have all tried to allay concerns regarding their exposure to group, while the Reserve Bank of India (RBI) has said that the Indian banking system remains resilient and stable.
Adani Group denied media reports that said the conglomerate was planning to cut back its capital spending.
Adani Group plans to trim its capital spending while providing more collateral in the form of stock pledges to lenders, Mint reported citing people close to the development.
"False report, on the contrary Adani Group is moving to prepay all LAS (Loans Against Shares) finance," a spokesperson for the group said in an emailed statement to Reuters.
Adani Group to pre-pay $1,114 mn of dues. Pre-payment will lead to the release of pledged shares in Adani Ports, Adani Green and Adani Transmission
Markets regulator Sebi has written to various custodian banks asking for details on beneficial owners of offshore funds and foreign portfolio investors (FPIs), Reuters reported quoting two sources directly aware of the matter.
While not unprecedented, the move comes after a scathing attack by U.S. short-seller Hindenburg Research on the Adani Group, alleging improper use of offshore tax havens and stock manipulation. The conglomerate denies all allegations.
Opposition MPs on Monday held a protest in front of Gandhi statue in Parliament complex and stalled proceedings in both houses while demanding a Joint Parliamentary Committee probe or a Supreme Court-monitored investigation into the Adani issue.
Both the Lok Sabha and Rajya Sabha were adjourned till 2 PM after opposition members protested in both houses seeking a discussion on the matter.
Last Friday saw a steep decline in Adani Group Shares
SBI's exposure to Adani Group is 0.9% of overall loan book, says chairman on last Friday
State Bank of India (SBI) chairman Dinesh Khara has said that the bank’s total exposure to Adani Group is 0.9 per cent of the overall loan book, which is around Rs 27,000 crore, adding that the bank has no concerns so far regarding its exposure to the embattled Adani Group. He added that any further financing to the conglomerate's projects would be "evaluated on its own merit".
Khara, who was on a post-earnings call, said that the bank does not envisage the tumult-hit conglomerate facing any challenge to service its debt obligations.
“Lending to Adani Group projects is with regard to ones having tangible assets and adequate cash flows,” Khara said on Friday. He added that the group has an excellent repayment record.
S&P downgrades outlook on Adani Ports, Adani Electricity to negative last Saturday
S&P Global Ratings downgraded outlook on two Adani Group businesses, Adani Ports and Adani Electricity, to negative from stable. "There is a risk that investor concerns about the group's governance and disclosures are larger than we have currently factored into our ratings, or that new investigations and negative market sentiment may lead to increased cost of capital and reduce funding access for rated entities," S&P said in a statement.
"We affirmed our issuer and issue ratings on the entities as their business fundamentals remain intact, short-term liquidity is adequate, and debt maturities in the next 12 months are manageable," it added.
‘Hit job on Indian markets a well-planned conspiracy,' says Virendra Sehwag
Indian cricketer joined the online conversation over Gautam Adani calling the Hindenburg Report a well-planned conspiracy planned against Indian markets. He tweeted, saying, "White people are jealous of India's progress. It's a hitjob on India's markets and looks like a well-planned conspiracy. They can try hard, but as always, India will emerge stronger.'
Adani Group companies are not LIC’s problem
Life Insurance Corporation of India (LIC) is not only the largest insurance company of India but it is also the biggest institutional investor in the Indian stock markets – much bigger than the biggest foreign portfolio investors (FPIs). LIC has been grabbing headlines for its exposure in the Adani Group, whose valuation has almost halved in the last few trading sessions on account of the scathing report released last week by Hindenburg Research. Incidentally, the issue has become a political one as well with many parliamentarians demanding a probe into the decision of the insurance major to invest in the shares of the diversified business conglomerate founded by Gautam Adani.
But it might come as a surprise to many that Adani Group is not the only exposure of LIC that has been in the doldrums as there are many other investments of LIC as well that have seen massive erosion in their valuation in the last six months even as the benchmark Sensex has gained 2.7 per cent in the same period.
In all, there are 36 companies in which LIC has a stake and whose respective stock prices have fallen more than 20 per cent in the last six months.
Adani promoters may prepay up to Rs 8,000 cr loans in 45 days
Billionaire Gautam Adani, Adani group's founder and Chairman, is looking to pre-pay a large part of loans against shares (LAS) portfolio of Rs 7,000-8,000 crore taken at the shareholder level, a media report said quoting sources. The loans are backed by share pledges, the report suggested, adding that the aim is to soothe investor nerves. The plan is to start reducing the LAS exposure immediately and bring it down to zero in the next 30-45 days, the report added.
Should you invest in Adani Stocks! What are experts saying?
Adani Group has lost Rs 8.8 lakh crore m-cap in the last eight trading sessions. The total m-cap of the group tanked to Rs 10.4 lakh crore on February 2, 2023, from Rs 19.2 lakh crore as of January 24, 2023. Where are the markets headed in the near term? Find out!
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