Skip to content
Search AI Powered

Latest Stories

Adani loses Asia's richest crown as stock rout deepens to $86bn

After losing $86 billion in recent days, the seven listed Adani Group entities now have a combined market capitalisation of about $131bn.

Adani loses Asia's richest crown as stock rout deepens to $86bn

Shares in Indian tycoon Gautam Adani's conglomerate plunged again on Wednesday (2) as a rout in his companies deepened to $86bn in the wake of a US short-seller report, with the billionaire also losing his title as Asia's richest person.

Wednesday's stock losses saw Adani slip to 15th on Forbes rich list with an estimated net worth of $75.1bn, below rival Mukesh Ambani, the chairman of Reliance Industries Ltd who ranks ninth with a net worth of $83.7bn.


Before the critical report by US short-seller Hindenburg, Adani had ranked third.

The losses mark a dramatic setback for Adani, the school-dropout-turned-billionaire whose fortunes rose rapidly in recent years in line with stock values of his businesses that include ports, airports, mining, cement and power. Now, the tycoon is fighting to stabilise his companies and defend his reputation.

The share slides come just a day after the Adani Group managed to muster support from investors for a $2.5bn share sale for flagship firm Adani Enterprises, in what some saw as a stamp of investor confidence at a time of crisis.

The report by Hindenburg Research last week alleged improper use by the group of offshore tax havens and stock manipulation. It also raised concerns about high debt and the valuations of seven listed Adani companies.

The group has denied the allegations, saying the short-seller's narrative of stock manipulation has "no basis" and stems from an ignorance of Indian law. It has always made the necessary regulatory disclosures, it added.

Shares in Adani Enterprises, often described as the incubator of Adani businesses, plunged 28 percent on Wednesday, bringing its losses since the Hindenburg report to more than $18bn. Adani Ports and Special Economic Zone dropped 19 percent. Both stocks marked their worst day ever.

"The kind of fall that we are seeing in Adani stocks is scary," said Avinash Gorakshakar, head of research at Mumbai-based Profitmart Securities.

Adani Power and Adani Wilmar fell 5 percent each, and Adani Total Gas slumped 10 percent, with all three falling by their daily price limits. Adani Transmission was down 3 per cent and Adani Green Energy 5.6 per cent.

Adani Total Gas, a joint venture with France's Total, has been the biggest casualty of the short seller report, losing about $27bn.

After losing $86bn in recent days, the seven listed Adani Group entities now have a combined market capitalisation of about $131bn.

Credit Suisse stops accepting 'Adani bonds'

Underscoring the nervousness in some quarters, Bloomberg reported on Wednesday that Credit Suisse had stopped accepting bonds of Adani group companies as collateral for margin loans to its private banking clients.

Deven Choksey, managing director of KRChoksey Shares and Securities, said this was a big factor in Wednesday's share slides.

Credit Suisse had no immediate comment.

"There was a slight bounce yesterday after the share sale went through, after seeming improbable at a point, but now the weak market sentiment has become visible again after the bombshell Hindenburg report," said Ambareesh Baliga, a Mumbai-based independent market analyst.

"With the stocks down despite Adani's rebuttal, it clearly shows some damage on investor sentiment. It will take a while to stabilise," Baliga added.

Shares in cement firms ACC and Ambuja Cements, which Adani Group bought from Switzerland's Holcim for $10.5bn last year, were down 6.2 per cent and 16.7 per cent, respectively.

Scrutiny of the conglomerate is stepping up, with an Australian regulator saying on Wednesday it would review Hindenburg's allegations to see if further enquiries were warranted.

Data also showed that foreign investors sold a net $1.5bn worth of Indian equities after the Hindenburg report - the biggest outflow over four consecutive days since Sept. 30.

Headaches for the Adani Group are expected to continue for some time.

India's markets regulator, which has been looking into deals by the conglomerate, has said it will add Hindenburg's report to its own preliminary investigation.

India's state-run Life Insurance Corporation (LIC) said on Monday (30) it would seek clarifications from Adani's management on the short seller report. LIC owned a 4.23 per cent stake in Adani Enterprises as of end-December and more than 9 per cent in Adani Ports and Special Economic Zone. The insurance giant was also a key investor in Adani's recent share sale.

Siddhartha Mohanty, one of LIC's managing directors, said in interviews on Monday that the insurer was engaging with the Adani Group but was positive on its investments.

Hindenburg said in its report it had shorted US-bonds and non-India traded derivatives of the Adani Group.

(Reuters)

More For You

Exclusive: 'Starmer must fill NHS staffing defecit'
Dr Chaand Nagpaul

Exclusive: 'Starmer must fill NHS staffing defecit'

LABOUR's latest announcement to cut NHS waiting lists, while welcome, does not go far enough, the former leader of the doctors’ union, Chaand Nagpaul has told Eastern Eye.

Prime minister, Sir Keir Starmer, unveiled his plans on Monday (6). He pledged Labour would set up more NHS hubs in community locations in England, and the service would make greater use of the private sector to help meet the challenge.

Keep ReadingShow less
Exclusive: 'Stop spreading racial hatred'
Nazir Afzal

Exclusive: 'Stop spreading racial hatred'

POLITICIANS must dial down “dangerous and inflammatory” rhetoric and recognise the contributions of all communities in Britain, prominent south Asians have told Eastern Eye.

They are concerned that recent social media attacks on asylum seekers, immigrants, especially British Pakistanis, as well as ministers will lead to unnecessary deaths.

Keep ReadingShow less
Lisa-Nandy-Getty

The culture secretary retains powers to refer the case to the Competition and Markets Authority, which could trigger an investigation into press freedom concerns linked to Abu Dhabi’s involvement. (Photo: Getty Images)

Calls grow for Lisa Nandy to end Telegraph ownership stalemate

THE SALE of The Telegraph newspaper has drawn widespread political calls for culture secretary Lisa Nandy to intervene and end the prolonged uncertainty surrounding its ownership.

The newspaper has been in limbo for 20 months after an auction process initiated by RedBird IMI, an Abu Dhabi-backed investment fund, failed to secure a suitable buyer.

Keep ReadingShow less
illegal-migrants-getty

According to government data, over 36,800 people crossed the Channel in 2024. (Photo: Getty Images)

Getty Images

Labour government reports highest illegal migrant removals since 2018

THE LABOUR government announced on Thursday that it had removed 16,400 illegal migrants since taking office in July, the fastest rate of removals since 2018.

On taking office, prime minister Keir Starmer scrapped the previous Conservative government's scheme to send migrants who arrive illegally to Rwanda, instead setting up a Border Security Command to crack down on illegal migration – a huge political issue in Britain.

Keep ReadingShow less
Two men jailed for trying to smuggle migrants into UK

Shafaz Khan (L), Choudhry Rashied (Photo: Home Office)

Two men jailed for trying to smuggle migrants into UK

TWO London-based men have been sentenced to over 10 years behind bars after being convicted of breaching UK immigration law by trying to smuggle four Indian migrants in a hidden van compartment disguised by a stack of dirty tyres.

According to the UK Home Office, British nationals Shafaz Khan and Choudhry Rashied, who operated under the alias ‘Manzar Mian Attique’, hid the group of migrants behind the tyres in a “purpose built” hidden space in the vehicle.

Keep ReadingShow less