A lot has happened ever since Hindenburg Research accused the Adani Group of 'shameless' stock manipulation. Here is a timeline of events.
Last week, US-based short seller Hindenburg Research accused the Adani Group of "brazen" market and fraud, which led to a significant stock selloff. Gautam Adani has consistently denied the allegations, and his company has described the information as "fake". A lot has happened since then. Here is a timeline of events.
January 24-31
A study by Hindenburg Research on January 24 alleged that seven listed firms of the Adani group have declined 85% on a fundamental basis due to extremely high valuations.
The next day, entities belonging to the Adani Group experienced a severe stock market correction, reducing their market capitalization by nearly ₹1 lakh crore.
The Adani Group responded to Hindenburg Research by saying that the report was baseless and termed the allegations as "baseless speculation". However, Hindenburg insisted that he stood by his report.
Subsequently, the Adani Group stated that this was not just an unwanted attack on a specific company, but a planned attack on India. Hindenburg said in his reply that, instead of addressing any important points, Adani "instigated a nationalistic narrative" that seeks to 'conflate the meteoric rise and wealth of its chairman, Gautam Adani, with India's success' .
Adani group companies continued to experience losses as trading resumed, leading to a two-day drop in market capitalization of ₹4 lakh crore.
While the Adani Enterprises FPO saw 1% subscription on the first day, Abu Dhabi's International Holding contributed $400 million to the FPO in support of Adani. The FPO was fully subscribed on 31st January.
February 1-3
On 1 February, private bank Credit Suisse stopped margin lending on Adani bonds. The private banking arm of the Swiss lender set zero loan value for the notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai.
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