In response to the SEBI’s request to the Supreme Court for a 6-month extension to complete its investigation into the Hidenburg allegations leveled against the Adani Group, the conglomerate led by Gautam Adani stated that it is fully cooperating with the investigation and that the application by the Indian market regulator contains no inferences of wrongdoing.

In its research, Hindenburg Research, an American short-seller, accused Adani Group on February 25 of financial violations. As a consequence, the market value of the Adani Group decreased by more than USD 140 billion.

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The Supreme Court ordered the Securities and Exchange Board of India to investigate the incident within two months and establish a six-person expert team to examine the protection of Indian investors on March 2. Sebi filed a request for a deadline extension on Saturday, citing intricate transactions involving the conglomerate’s listed, unlisted, and offshore entities that require a more thorough investigation.

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SB Adani Family Trust sold to GQG Partners 3,39% of Adani Enterprises, 0.04% of Adani Ports, 2.55% of Adani Transmission, and 3.51% of Adani Green Energy.
As of January, GQG Partners is a global equity investment boutique that manages $92 billion in client assets.

Rajiv Jain, chairman of GQG Partners, said in a statement, “We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India’s economy and energy infrastructure, including their energy transition, over the long term.”

Earlier in the day, exchanges reported numerous transactions involving Adani Group shares.

Adani Group’s chief financial officer, Jugeshinder (Robbie) Singh, said in a statement, “We value GQG’s position as a strategic investor in our infrastructure and utility portfolio of renewable energy, logistics, and energy transition.” This transaction demonstrates the sustained faith of global investors in the governance, management practises, and expansion of the Adani portfolio of companies, he stated.

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After remaining volatile in the wake of the Hindenburg Research report alleging stock manipulation and fraud, Adani Group shares extended gains for a third consecutive day on Thursday. The conglomerate termed the allegations “malicious” and intended to harm Adani Enterprises Ltd.’s withdrawn follow-on public offering.

Thursday, the Supreme Court ordered the market regulator SEBI to investigate the allegations in the current set of Adani-Hindenburg petitions. The supreme court ruled that SEBI must conclude its investigation and submit a report within two months. The court also appointed a panel of experts, including KV Kamath and Nandan Nilekani, to investigate the situation.
Adani Enterprises is in the midst of acquiring a 49 percent stake in BQ Prime’s owner, Quintillion Business Media Ltd.

The post Adani Promoters Raise Rs 15,446 Crore From GQG Partners By Selling Stakes In Group Firms appeared first on Republic Aeon.

Since the allegations were made by Hindenburg Research, several financial institutions in New York, London, and Tokyo have analysed their exposure to Gautam Adani, the second-wealthiest individual in the world.

The multibillionaire Gautam Adani is facing the worst corporate crisis of his career. Bloomberg reported that since the Hindenburg Research report on January 24 accusing the Adani Group of stock manipulation and accounting fraud, the company’s market value has decreased by $108 billion.

Since the allegations were made, numerous financial institutions in New York, London, and Tokyo have analysed their exposure to Adani, once the second-wealthiest company in the world.

Worst nightmare for Adani Group:

• Since Hindenburg’s report on January 24, Adani Group companies’ combined market value has decreased by nearly half. The market capitalization of Adani Enterprises, which is described as an incubator for Adani’s businesses, has decreased by $26 billion.
• On Thursday, shares of Adani Enterprises fell 27 percent, closing at their lowest level since March 2022.
• Other group companies also lost ground, with Adani Total Gas losing 10% of its value.
•  Adani Green Energy and Adani Transmission, while Adani Ports and Special Economic Zone declined by nearly 7%.
• The turmoil has not only impacted Adani Group’s stock price, but also banks that have extended loans to the company. The State Bank of India has declined 11% since the release of the Hindenburg report.
• According to data compiled by Bloomberg, foreign institutional investors withdrew a net $2 billion from India’s stock market from January 27 through January 31.
• Bloomberg quoted Jian Shi Cortesi, a fund manager at Zurich-based GAM Investments that oversees more than $80 billion in assets, as saying, “The Adani-related headlines are generating a high level of negative attention, which could dampen investor appetite for Indian stocks.”
• While we do not expect Adani to drag down the entire Indian stock market, we believe this could cause India to underperform other Asian markets, such as China, he added.
• Bloomberg also reported that Citigroup’s wealth unit has ceased accepting securities issued by Adani companies as collateral for margin loans after “negative news regarding the group’s financial health” precipitated dramatic price declines. The private banking division of Credit Suisse had also made a similar modification to the bonds.
• The securities division of Mizuho Financial Group Inc. has dealt with Adani in the past and is examining the allegations levelled against the conglomerate, the unit’s CEO Yoshiro Hamamoto told reporters on Thursday in Tokyo. According to public documents, Mizuho Securities oversaw the issuance of debt by Adani companies.

Adani denies the accusations

Although Adani’s company has refuted the allegations and the billionaire himself stated in a Thursday video address that the cancelled equity offering will have no impact on operations, the selloff shows no signs of abating.

The opposition agrees to jointly raise the Adani matter

On Thursday, opposition parties agreed to jointly raise allegations of fraud against the Adani Group in Parliament, but they had yet to reach a consensus on the method of investigation into the Gujarat-based multinational corporation.

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At a meeting of like-minded political parties convened by Congress president Mallikarjun Kharge, a consensus was reached to vigorously raise the Adani issue in both the Houses and force the government to discuss the Motion of Thanks on the President’s Address beginning on Monday.

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