Billionaire Gautam Adani stood beside Israeli Prime Minister Benjamin Netanyahu on 4 February and looked relaxed as hundreds of people gathered for the ceremonial signing at the Haifa Port. The Haifa Port is being co-developed by Adani. TRENDING STORIES See All Premium Nifty may rise to 18,300; RBI MPC meet, global trends t .
. . Premium Infinix launches two new smartphones with MediaTek proc .
. . Premium India is biggest exporter of vaccines, mobile phones: A .
. . Premium US-China tension grows as suspected spy balloon leads t .
. . Ever since the Adani Group stocks dropped, Adani has been looking tensed.
However, despite a searing short seller attack that triggered a stock rout, the last-minute bids had helped the flagship of his ports-to-power empire close a record $2. 5 billion share sale. As soon as Adani headed home from Tel Aviv at 6:13 pm local time in his Bombardier Global 6500 private jet, he spent a lot of time in the quietest part of the flight cabin on marathon calls.
ALSO READ: On Adani controversy, SEBI says committed to ensuring market integrity His firm's stocks' brutal sell off continued on Wednesday and wiped out market value of more than $80 billion in a week. The beginning of turmoil: On Wednesday, the Royal Group, the parent company of Abu Dhabi’s International Holding Co. , said it won’t support the group further.
Earlier during the union budget speech, opposition parties had heckled the Narendra Modi government in parliament, chanting “Adani, Adani". MINT PREMIUM See All Premium Things are looking up for Meta Premium India misreads China’s LAC intentions at its own peril Premium Wary central banks binge on gold, sending prices soaring Premium How a balloon burst Sino-American talks At around 5 p. m.
in India on Wednesday, Adani asked for an emergency board meeting to be convened in 30 minutes. But at 10:21 p. m in India, the filing had hit local stock exchanges, marking a dramatic U-turn.
In just 19 hours, India’s biggest ever follow-on share sale had gone from being a done deal to a dud. Maintaining relationships: Ever since Hindenburg had accused Adani’s conglomerate of “brazen" fraud and years of stock market manipulation, money laundering, as well as other alleged crimes, the conglomerate has been hitting back saying the report was “bogus," “maliciously mischievous" and threatened legal action. It also released a413-page Sunday rebuttal and called Hindenburg’s report and its short bet a “calculated securities fraud" as well as an attack on India and its institutions.
Three days later, its share sale had unraveled amid the fracas. Dejected Attendees: One of the dejected attendee of Adani’s emergency Wednesday meeting even claimed that it was an attack from a small short seller to destroy years of hard work in just a week. Life Insurance Corporation of India Ltd.
, which is a shareholder in five Adani Group companies deemed the decision a gesture of good corporate governance, reported Hindustan Times. On Thursday, Adani addressed investors in a video to explain the abrupt volte-face, he said: “For me, the interest of my investors is paramount and everything is secondary. " He even said he wanted to insulate them from losses.
“Despite the volatility in the stock over the last week, your faith and belief in the company, its business and its management has been extremely reassuring and humbling, for all of us. " By Friday, half the value of the Adani Enterprises had evaporated since the Hindenburg report’s release. Distancing itself: With the Adani stock rout gaining momentum, it had a ripple effect on Modi’s government and led to publicly addressing and distancing itself from the scandal-hit conglomerate.
“It is between one private company, and the regulator and the market; It doesn’t concern the macroeconomy," HT quoted T. V. Somanathan, the nation’s finance secretary on Thursday.
“The exposure of banks, LIC to Adani is not worrying at all. I don’t see any contagion risk on this. " $12 Million Payday Adani deal arrangers are now eyeing scraps from expected $12 million payday, as Adani entered talks with creditors to prepay some loans backed by pledged shares.
This is taking place as as some banks stopped accepting the securities of the group as collateral. “The dust is not yet settled," Alok Churiwala, managing director of Mumbai-based Churiwala Securities Pvt. , said on Thursday.
“One has to be very watchful and investors would be well advised not to tinker with Adani stocks till there is clarity on the way forward. " Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News .
More Less OPEN IN APP.
