Adani Group capitalization lost 100 billion USD

The market capitalization of 10 subsidiaries of Adani Group in the trading session on February 21 lost 100 billion USD.

Citing sources from Bloomberg, the wave of selling off shares of Adani Group (the business of Indian billionaire Gautam Adani) took place after allegations of "stock fraud" from short-selling firm Hindenburg Research and has not stopped yet. again.

Accordingly, on January 25, Hindenburg announced the results of a two-year investigation that found that Adani Group "engaged in stock manipulation and book fraud for decades". The short-seller said it had "huge debt," including stock-backed loans from key executives who are members of the Adani family.

This accusation then sparked a wave of selling off stocks and bonds of companies in Adani Group. Since January 24 until now, despite Mr. Adani's efforts to cancel the offering of more shares or to reassure shareholders on television, the group's market value has dropped by more than $136 billion in less than a month.

Reportedly, the billionaire and the leaders of the group even hired a number of media and legal agencies to reassure investors, while cutting costs and paying off debts to show their ability. corporate finance.

According to the Financial Times, power unit Adani canceled a contract to buy an $847 million power plant last week due to slowing spending. On February 20, Adani decided not to submit an offer to buy shares in Indian electricity trading company PTC in an effort to save cash, according to Bloomberg.

However, the continued sell-off in stocks is a sign that investors are still not satisfied and Mr. Adani needs to do more.

In particular, this group in recent years has also mobilized up to 8 billion USD through bonds, so investors are more and more worried about their financial situation. Several rating agencies have also recently downgraded some of Adani Group's subsidiaries, including Adani Green Energy and Adani Ports & Special Economic Zone. According to data from Bloomberg, in the trading session on January 21, Adani Enterprises stock did not fall sharply. However, shares of subsidiaries such as Adani Green Energy, Adani Transmission and Adani Total Gas all fell at least 5%.

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