India: the title of Adani Enterprises continues to plunge
Gautam Adani, during the inauguration of the Bengal Global Business Summit (BGBS) in Kolkata on April 20, 2022. AFP - DIBYANGSHU SARKAR
Text by: RFI Follow
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Another dark day for Gautam Adani.
Adani Enterprises, the flagship of the Indian tycoon conglomerate, fell on Wednesday by nearly 30% on the Bombay Stock Exchange.
A dip that marks a fifth consecutive day of losses.
The rout linked to the publication of a very critical report generated colossal losses for the conglomerate, which was built around its port activities and with the trade in raw materials.
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The numbers are
enough to make your head spin
.
Since last week, $92 billion in market value has been wiped out, according to Bloomberg News.
At the same time, Gautam Adani's personal fortune has shrunk by more than 40 billion dollars, according to the Forbes ranking.
This knocks him out of the top 10 richest men in the world.
A loss to put into perspective, the tycoon would still weigh 75 billion dollars and the price of Adani Enterprises had soared over the last 5 years by more than 1000%.
This Thursday morning, the main title of the Indian group plunged 10% on the Bombay Stock Exchange at the opening, after the cancellation of a sale of shares of 2.5 billion dollars.
"
Our business fundamentals are very strong, our balance sheet is healthy and our assets are robust
," Group Chairman and Founder Gautam Adani said in a statement on Thursday, following the stock's plunge to 1.915. 85 rupees, according to the Bombay Stock Exchange, triggering the automatic halt in trading.
Five other titles of the group suspended
A total of five other Adani Group titles have been suspended after their opener plunge.
Trading around shares of Adani Green Energy, Adani Ports, Adani Total Gas and Adani Transmission all stalled after falling 10%, while Adani Wilmar also saw its circuit breaker tripped after falling 5% , according to data from the Bombay Stock Exchange.
At the origin of this debacle:
the report of a small American
investment company Hindenburg Research.
He accuses the group of “
brazen manipulation of shares
” and “
accounting fraud over several decades
”.
The conglomerate was quick to respond at length.
413 pages to defend against what he considers to be “
an unwarranted attack on a specific company
” and “
a calculated attack on India
”.
The group is considering legal action against Hindenburg Research, Hindenburg which had bet on Adani's price drop.
Bet succeeded, for the moment at least.
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