Signage of Adani Group at company’s gas station in Ahmedabad, India, on Wednesday, Feb. 1, 2023.
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India’s Adani conglomerate deepened market losses to exceed $100 billion on Thursday, which have snowballed since a short-seller’s scathing report triggered market turmoil and led the company to walk back its public share sale.
Losses across Gautam Adani’s main businesses hit $107 billion by 10 a.m. London time on Thursday since the Jan. 24 publication of an extensive critical report from New York’s Hindenburg Research, which has disclosed a short position in Adani Group companies.
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Market value loss for Adani companies
| Company name | Market cap ($bn Jan 24) | Market cap ($bn Feb 2) | Total loss ($bn) | Total loss (%) |
|---|---|---|---|---|
| Adani Enterprises | 48.03 | 21.80 | 26.23 | 54.61 |
| Adani Green Energy | 37.09 | 20.07 | 17.03 | 45.90 |
| Adani Ports | 20.11 | 12.18 | 7.93 | 39.45 |
| Adani Transmission | 37.62 | 21.20 | 16.43 | 43.66 |
| Adani Total Gas | 52.29 | 22.97 | 29.32 | 56.07 |
| Adani Power | 12.97 | 9.51 | 3.46 | 26.64 |
| Adani Wilmar | 9.12 | 6.68 | 2.43 | 26.67 |
| Ambuja Cements | 12.11 | 8.60 | 3.51 | 28.99 |
| ACC | 5.37 | 4.25 | 1.11 | 20.76 |
| Sum total | 107.45 |
Source: CNBC, FactSet, as of 10 AM UTC on Feb. 2
Alleging a two-year investigation, the report charged the conglomerate with engaging in a “brazen stock manipulation and accounting fraud scheme over the course of decades.”
The Adani firmly denied the accusations as “nothing but a lie” from the “Madoffs of Manhattan” in a 413-page riposte that failed to soothe skittish investor sentiment and rein in a rapid sell-off.
“It is tremendously concerning that the statements of an entity sitting thousands of miles away, with no credibility or ethics has caused serious and unprecedented adverse impact on our investors,” the Adani response said, describing Hindenburg as an “unethical short seller.”
“Hindenburg has not published this report for any altruistic reasons but purely out of selfish motives and in flagrant breach of applicable securities and foreign exchange laws,” it said.
Hindenburg on Jan. 29 retorted that the Adani…
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