NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Mukesh Ambani
    WhatsApp
    Reliance Jio
    OPPO
    Vivo
    Sensex
    Bitcoin
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Adani Group's meltdown: Lenders, stock exchanges put conglomerate on notice
    Business

    Adani Group's meltdown: Lenders, stock exchanges put conglomerate on notice

    Adani Group's meltdown: Lenders, stock exchanges put conglomerate on notice
    Written by Athik Saleh
    Feb 03, 2023, 12:47 pm 4 min read
    Adani Group's meltdown: Lenders, stock exchanges put conglomerate on notice
    Adani Group companies' market capitalization declined by over $100 billion

    Gautam Adani's business empire is in the midst of a meltdown, the scale of which no one could have predicted. Once a favorite of investors, both domestic and global, the conglomerate's stocks are now being looked at with suspicious eyes. Adani Group is under intense scrutiny from different sides. Investors, financial institutions, regulators, and stock exchanges have become wary of the group's fall.

    Why does this story matter?

    • A report by US-based short seller Hindenburg Research accusing Adani Group of stock manipulation and accounting fraud has caused mayhem in the conglomerate's once impenetrable fortress.
    • The hasty withdrawal of Adani Enterprises' FPO only added more fuel to the fire surrounding the conglomerate.
    • Investor confidence is at an all-time low, and the company's assurances about its financial health have fallen on deaf ears.

    Dow Jones Indices has removed Adani Enterprises from Sustainability Index

    Adani Group's struggles haven't gone unnoticed by stock exchanges. S&P Dow Jones has decided to remove Adani Enterprises, the flagship company of Adani Group, from its Sustainability Index. "Adani Enterprises will be removed from Dow Jones Sustainability Indices," said S&P Dow Jones Indices in a note. The decision was reached after a media and stakeholder analysis triggered by allegations against the conglomerate.

    What is Dow Jones Sustainability Index?

    The Dow Jones Sustainability World Index comprises the world's top companies identified by S&P Global through corporate sustainability assessment (CSA). It includes 10% of the largest companies in the S&P Global BMI based on "long-term economic, environmental and social criteria."

    BSE and NSE have placed Adani Enterprises under surveillance

    It is not just Dow Jones that has taken action against Adani Group. Indian stock exchanges BSE and NSE have also taken note of the rout the conglomerate's companies are undergoing in the market. The stock exchanges have placed Adani Enterprises, Adani Ports and Special Economic Zone, and Ambuja Cements under short-term additional surveillance measure (ASM) framework.

    Placing stocks under ASM is based on market surveillance: Exchanges

    Companies are placed under ASM to prevent speculative trading and short-selling. It is part of an initiative by SEBI and exchanges to enhance market integrity and protect investor interests. The parameters for moving a stock under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation, and price-earning ratio. The decision is purely based on market surveillance, said the exchanges.

    TMC MP calls for reevaluating index membership of Adani stocks

    S&P Dow Jones removes Adani Enterprises from Dow Jones indices due to charges of stock manipulation & accounting fraud.
    Why is @NSEIndia not reevaluating index membership of Adani stocks when international ones are? pic.twitter.com/nnL3WK1esM

    — Mahua Moitra (@MahuaMoitra) February 3, 2023

    Various financial institutions are trying to reduce their exposure

    Adani Group's backers around the world are trying to gauge their exposure to the conglomerate led by Gautam Adani, Asia's former richest man. Financial institutions that have backed the conglomerate, including Citigroup, Credit Suisse, and Barclays, are looking at ways to reduce their exposure to the group. Back home, RBI is also looking into Indian banks' exposure to the Adani Group.

    Global lenders have stopped accepting Adani securities as collateral

    Global lenders such as the wealth arm of Citigroup and Credit Suisse AG have stopped accepting Adani Group securities as collateral for margin loans. The conglomerate recently topped up collateral on a $1 billion loan to maintain the collateral cover. It added around $300 million worth of shares as collateral for a loan granted by a group of banks, including Barclays Plc.

    Market capitalization of Adani Group companies is down $110bn

    Adani Group stocks have been witnessing a bloodbath on Dalal Street. In six trading sessions since the Hindenburg report was published, the market capitalization of the listed companies of the conglomerate has eroded by $110 billion (Rs. 8.79 lakh crore). On Thursday, following the withdrawal of the Rs. 20,000 core FPO (follow-up public offer), Adani Enterprises' stocks fell 26.70%.

    Adani Group stocks are trading in red even today

    Adani Group stocks continue their downward trajectory in today's intra-day trading. At the time of publishing, Adani Enterprises was down 15%. The stocks of Adani Green Energy and Adani Transmission have declined by 10%. Adani Ports is down by 6.60%, while Adani Total Gas, Adani Power, and Adani Wilmar have gone down by 5%. Ambuja Cements and ACC are also trading in the red.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Latest
    Bombay Stock Exchange (BSE)
    Adani Group
    National Stock Exchange
    Gautam Adani

    Latest

    India records nearly 4,000 new COVID-19 cases—highest in 6 months     COVID-19
    F1 2023, Max Verstappen wins the Australian GP: Key stats Max Verstappen
    Should Renault bring the 2024 Espace SUV to India Renault
    Varun Dhawan issues clarification after criticism for kissing Gigi Hadid Varun Dhawan

    Bombay Stock Exchange (BSE)

    USFDA pulls up Sun Pharma for lapses in Gujarat plant  Sun Pharma
    Investor alert: BSE now has 12 crore registered investor accounts Stock Market
    LIC IPO debuts on Dalal Street at discounted price Initial Public Offering (IPO)
    Paytm debuts on NSE, BSE: Find all key details here Paytm

    Adani Group

    Noida: Fire breaks out at Adani Group's upcoming data center  Noida
    Adani Group's debt crisis: How real it is  Adani Ports
    EPFO continues investment in 2 Adani companies despite depleted value Employees Provident Fund Organization (EPFO)
    Centre hasn't intervened in Adani crisis: PM Modi's economic adviser Gautam Adani

    National Stock Exchange

    Why has NSE put three Adani Stocks under surveillance Adani Group
    Who's ex-Mumbai top cop arrested in NSE phone tapping case Mumbai
    Ex-Mumbai top cop, former NSE CEO booked in phone-tapping case Central Bureau Of Investigation (CBI)
    NSE manipulation case: CBI raids properties linked to Chitra Ramkrishna Central Bureau Of Investigation (CBI)

    Gautam Adani

    How Jack Dorsey lost over $500mn after latest Hindenburg report  Jack Dorsey
    Another big one: Adani slayer Hindenburg Research teases new report Adani Group
    Rajya Sabha adjourned again amid ruckus over Gandhi's London remarks Parliament
    How is Adani Group fighting the Hindenburg narrative Adani Group

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023