Adani Group share losses reached $100 billion on Thursday after the conglomerate’s flagship canceled a $2.4 billion share sale, saying it “would not be morally correct” to proceed given the stock writedown.
All ten stocks you control Adani group Fell in early trading in mumbai. Adani, Adani Transmission and Adani Ports extended losses by 10 per cent, deepening the sell-off unleashed last week by the short seller’s attack on the conglomerate.
In a video address released shortly before the markets open on Thursday, founder Gautam Adani dismissed concerns about the financial health of his empire, saying the cancellation of the share sale “will not have any impact on our current operations and future plans.”
He said that “given the market volatility seen yesterday, the board felt strongly that it would not be morally right to proceed” with the offer to proceed, adding that “once the market has stabilized, we will review our capital market strategy”.
Wednesday’s decision to Withdrawal of stock sale and refund of investors This came after shares in Adani Enterprises fell to 2,179.75 rupees ($27), well below the deal’s minimum price of 3,112 rupees.
Shares of the Adani Group have now lost more than 8.4 trillion rupees since Hindenburg Research, the short seller, accused the group last Wednesday of using offshore entities in tax havens to inflate share prices of its listed companies, allowing it to take on more debt and “put in full amount”. Group on a risky financial basis.” The Adani Group denied the allegations.
Adani made repeated efforts to reassure investors in the run-up to the stock sale, including issuing a 413-page response to the short seller’s allegations. like that He recruited some of the great tycoons of India To help get a follow-up offer across the line.
Major investors, including Abu Dhabi International Holding Company and London-listed Jupiter Asset Management, had already committed to buying 30 percent of the offering before the public share sale began on Friday. International Humanitarian City on Monday It pledged to invest $400 million in sales.
The sale prompted some financial groups, including Citigroup’s wealth unit, to stop accepting Adani Securities as collateral for margin loans, according to a person familiar with the situation.
The Adani Group on Thursday also denied “market rumours” that shares of cement manufacturers Ambuja Cement and ACC were pledged as collateral as part of the acquisition financing and that the group was under pressure to cover losses resulting from lower share prices.
The Adani Group’s debt was also hit by the sell-off, with dollar notes due in 2024 from Adani Ports dropping 20 cents to just under $0.70 on the dollar on Wednesday, while other notes due in 2024 from Adani Green Energy down about 10 cents. to $0.67 on Wednesday. dollar.