Now the brutal stock rat in Gautam Adani’s companies continued on Friday with the losses in Hindenburg report extending to $118,000,000,000, making it one of the worst in India’s history. All the list of stocks of Adani firms continued their free fall on Friday, with the Adani Enterprises dropping as much as 35% and adding to a nearly 50% plunge since the Blueprint offered $2.5 billion share sale late on Wednesday.
Several Adani firms shares regularly hit their lower limit, halting their trading on Indian versus almost every day this week. To make matters worse, Global Index SNP Dow Jones Indices said it would remove Adani Enterprises from widely used sustainable indices on the 15 February pardon me on the 7 February, making the shares less appealing to green investors.
The New York Stock Exchange said that it will not accept a few of Adani firm’s shares as collateral for loans to clients similar to City and Credit Suisse. Apart from regulatory scrutiny of Adani’s business dealings, the crisis of confidence in Adani has become a national issue, with India’s opposition lawmakers disrupting parliament on Thursday to demand answers from Prime Minister Narendra Modi’s government.
The deep sell off over the last two days also reflects worries about Adani’s ability to raise funds after it scrapped a share sale deal. But a Reuters report quoting a source showed that the group’s firms paid interest due on their dollar bonds amounting to the business empire also plans to release a credit report on Friday as a response to Hindenburg questions on the group’s cash flow.
Still, the market reflects a lack of investor confidence in the group. The group has tried to respond and convince markets regarding Hindenburg allegations over the past week, but it is clear Gautam Adani needs to do more to win in back market confidence as he battles his biggest reputational and business challenge.
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