Adani group gets $400 Million in share sale investment from UAE
Gautam Adani's conglomerate saw its value plummet by nearly $ 70 billion....
Adani: Billionaire’s empire lost $100 billion in days
Indian billionaire Gautam Adani has made an effort to reassure investors after his business surprised everyone by postponing a share sale.
Adani Enterprises announced on Wednesday that it would return to investors the $2.5 billion (£2 billion) raised from the sale.
According to Mr. Adani, the decision will not have an influence on “our current activities and future plans.”
The action brings to a close a week that saw a US investment firm accuse Adani Group companies of fraud.
Adani disputes the charges.
However, over the past several days, the market value of the group’s enterprises has dropped by $108 billion.
Adani is currently ranked 16th on Forbes’ real-time list of billionaires after losing $48 billion on his own personal wealth.
Mr. Adani was the third richest person in the world less than two weeks ago.
On January 25, India’s largest secondary share offering in history was scheduled to begin with the sale of shares of Adani Enterprises, the parent company of his ports-to-energy conglomerate.
However, a day earlier, a report by the US-based investment firm Hindenburg Research accused the Adani group of years of “brazen” stock manipulation and accounting fraud.
Hindenburg specialises in “short-selling,” which is betting against the share price of a company in the hope that it will decline.
The Adani Group addressed the study as “a vicious combination of selective falsehoods and stale, unsubstantiated and debunked charges” in its response, but that didn’t allay investor concerns.
Seven of Mr. Adani’s group’s publicly traded companies operate in a variety of industries, including renewable energy, commodities trading, ports, utilities, and airports. Billions of dollars have been invested in or lent to companies affiliated with the organisation by numerous Indian banks and state-owned insurance firms.
No. The Adani Group released a thorough denial that took up more than 400 pages as the market continued to tank, labelling the Hindenburg report as a “calculated attack on India.”
It claimed to have followed all local regulations and to have provided the required regulatory disclosures. The report was allegedly intended to allow Hindenburg “to book massive financial gain through wrongful means at the cost of countless investors,” according to the complaint.
Asserting that the Adani Group had “failed to specifically answer 62 of our 88 questions, “Hindenburg nevertheless stood by the study.
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