Home / News / India /  Hindenburg row, $100 bn market loss, MSCI scrutiny, cancelled FPO: 10 big setbacks for Adani in a week

The week-long rout in Adani Group stocks persisted, erasing $100 billion in market value as of Thursday as they extended decline after the group decided to call off its follow-on public offering (FPO), which was fully subscribed. The stocks have been facing steep losses since the Hindenburg report on January 24, which raised concerns over the group's financials which the Group dismissed as as ‘baseless’.

10 big setbacks for Billionaire Gautam Adani-led Adani Group in a week -

  • On January 24, Hindenburg Research, US-based short seller accused, Adani Group of committing "a brazen stock manipulation and accounting fraud scheme over the course of decades".
  • The Hindenburg report sparked a huge sell-off in shares in Adani's firms, wiping out more than $100 billion in market value as of Thursday, according to Bloomberg News.
  • Index provider MSCI said on Saturday it is seeking feedback on Adani Group and associated securities after the Hindenburg report.
  • On Sunday the conglomerate issued a 413-page statement that it said rebutted all of Hindenburg's claims, calling it an attack on the growth story and ambition of India, after which Hindenburg said Adani's statement failed to answer most of the questions raised in its report.
  • Adani's personal wealth has dived significantly in a week amid the Group stocks selloff, losing richest Asian and Indian man position to rival Mukesh Ambani. He also lost his rank in the elite top 10 billionaires in the world.
  • Credit Suisse Group AG has stopped accepting bonds of Gautam Adani’s group of companies as collateral for margin loans to its private banking clients
  • Citigroup Inc.’s wealth arm has stopped accepting securities of Gautam Adani’s group of firms as collateral for margin loans, reported Bloomberg
  • Adani Enterprises FPO was cancelled even as the follow-on public offer (FPO) was fully subscribed. Gautam Adani on Thursday said that the group decided to call of the share sale to insulate investors from potential losses.
  • Bonds of the Indian billionaire’s flagship firm plunged to distressed levels in US trading
  • Reserve Bank of India (RBI) has asked lenders for details of their exposure to the Adani group, as per a Reuters report

Gautam Adani is the founder of conglomerate Adani Group, the largest port operator in India. Adani Group's interests span infrastructure, commodities, power generation and transmission and real estate. The Adani Group has been diversifying its business interests and last year bought cement firms ACC and Ambuja Cements from Switzerland's Holcim for $10.5 billion.

(With inputs from agencies)

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