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Adani Enterprises Stocks Fall By Over 20%, Hitting Multiple Trading Stops


Shares of Adani Enterprises down more than 20%, multiple stops

The Adani Group has denied Hindenburg Research’s allegations.

Mumbai:

Billionaire Gautam Adani denied on Friday that his rise to become Asia’s richest man – a title he lost during a phenomenal stock crash – was thanks to Prime Minister Narendra Modi, as shares in the His corporation fell again.

The combined market capitalization of his listed units has dropped by more than $100 billion since US short-seller Hindenburg Research – which makes money by betting on falling stocks – published an explosive report last week.

It accused the Adani Group of accounting fraud and artificially inflated stock prices, calling it a “blatant accounting fraud and stock manipulation conspiracy” and the “largest scam in public history.” ty”.

The group has denied allegations that Mr. Adani’s close relationship with Prime Minister Modi, who is also from the state of Gujarat, helped him win business and avoid proper scrutiny.

“These allegations are baseless,” Mr Adani told India Today on Friday, adding that their common origin made him an “easy target” for such allegations.

“The reality is that my professional success is not led by any individual,” he insists.

His comments come as shares of his flagship company Adani Enterprises have been repeatedly suspended from trading on the Bombay Stock Exchange, hitting multiple stops en route to a more than 20% drop.

Adani Power, Adani Green Energy, Adani Total Gas – in which French giant TotalEnergies has a 37.4% stake – and Adani Transmission were also suspended when the limit was reached.

Mr. Adani himself has seen his fortune plummet by tens of billions of dollars, knocking him out of Forbes’ real-time top 20 rich list, where he once ranked third.

Late Wednesday, his main company canceled a $2.5 billion stock sale intended to help reduce debt levels – a longstanding concern – restore confidence and expand its shareholder base. .

The issue failed to attract “mom and dad” retail investors and only sold out thanks to large institutional buyers, Indian tycoons and $400 million from IHC of the United Arab Emirates .

The Adani Enterprises board of directors said in a statement that continuing to resolve the matter “would not be ethically correct” and that it would refund all payments.

According to Bloomberg News, major banks including Credit Suisse and Citigroup have stopped accepting Adani bonds as collateral for loans to private customers.

That stoked worries about how Adani will raise new capital, with Adani dollar bonds trading hard and signs of contagion in the Indian market growing, Bloomberg reported.

According to Hindenburg Research, Adani artificially inflated the share prices of his units by funneling money into shares through offshore tax havens.

The group has benefited from what it calls a “decade-long model” of government leniency and that “investors, journalists, citizens and even politicians have been shy spoke out for fear of reprisal.”

The Adani Group said it was the victim of a “malicious” reputation attack and issued a 413-page statement on Sunday that it asserted that Hindenburg’s claims were “nothing more than a lie”.

Hindenburg replied that Adani failed to answer most of the questions posed in his report.

The Reserve Bank of India has asked lenders for details of their exposure to the Adani Group, whose interests include ports, telecommunications, airports, media and coal. , oil and solar energy – Bloomberg cited unnamed sources.

In Friday’s interview, Mr. Adani said that only 32% of his company’s loans are owed to Indian banks, with almost half of their debt coming through international bonds.

Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, a Company of the Adani Group.

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