Adani Group stock losses hit $100 billion on Thursday after the conglomerate’s flagship canceled a $2.4 billion share sale, saying it was “morally wrong” to proceed given the stock write-off.
Controlled by all 10 stocks Adani Group It fell in early trade in Mumbai. Adani Enterprises, Adani Transmission and Adani Ports extended their losses by 10 percent, deepening the sell-off caused by an onslaught of short sellers on the conglomerate last week.
In a video address released shortly before markets opened on Thursday, founder Gautam Adani dismissed concerns about the financial health of his empire, saying the cancellation of the share sale “will have no impact on our existing operations and future plans”.
He said “given yesterday’s market volatility, the board strongly feels it would be morally wrong to proceed with a further offer”, adding that “we will review our capital markets strategy once the market stabilizes”.
Decision on Wednesday pull stock sales and pay back investors It came after shares of Adani Enterprises fell to Rs 2,179.75 ($27), well below the deal price of Rs 3,112.
Adani Group shares have now lost more than 8.4 trillion rupees since short seller Hindenburg Research last Wednesday accused the conglomerate of using offshore entities in tax havens to inflate the share prices of its listed companies. a group in uncertain financial condition”. “Adani Group” denied the allegations.
Adani made repeated efforts to reassure investors leading up to the share sale, including releasing a 413-page response to the short seller’s claims. That too It involved some of India’s leading tycoons helping you get the next offer down the line.
Leading investors, including Abu Dhabi’s International Holding Company and London-listed Jupiter Asset Management, had committed to buy 30 percent of the offering before the public share sale began on Friday. IHC on Monday He promised to invest 400 million dollars on sale.
The sale prompted some financial groups, including Citigroup’s wealth division, to stop accepting Adani securities as collateral for margin loans, according to a person with direct knowledge of the situation.
Adani Group on Thursday also denied “market rumours” that shares in cement-making equipment Ambuja Cements and ACC had been pledged as part of the acquisition financing, and that the group was under pressure to cover losses caused by falling share prices.
Adani Group debt was also affected by the sell-off, with a dollar bond from Adani Ports due in 2024 falling 20 cents to just under $0.70 on the dollar on Wednesday, while another from Adani Green Energy due in 2024 the bond fell about 10 cents to $0.67. dollar.
