Adani group’s total market cap losses hit US$100b
India’s Adani group shares plunged yesterday after the Gautam Adani-led conglomerate shelved a US$2.5 billion share sale amid a turbulent market, bringing its cumulative market capitalisation losses to US$100 billion since last week’s short-seller attack.
The withdrawal of Adani Enterprises’ share sale marks a dramatic setback for Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years in line with the stock values of his businesses.
Adani on Wednesday called off the share sale as a stocks rout sparked by United States shortseller Hindenburg’s criticisms deepened, despite the offer being fully subscribed on Tuesday.
In the fallout of the short-seller’s attack, Adani has also lost his title as Asia’s richest man.
The group’s flagship firm, Adani Enterprises, plunged nearly 20 per cent yesterday, trading at its lowest since March last year. Other group companies — Adani Ports and Special Economic Zone was down five per cent while Adani Total Gas, Adani Green Energy and Adani Transmission lost 10 per cent each.
Since Hindenburg’s report was released on Jan 24, group companies have lost nearly half their combined market value.
Adani Enterprises — described as an incubator of Adani’s businesses — alone has lost US$24 billion in market capitalisation.
Adani, 60, is now the world’s 16th richest, as per Forbes’ list, down from third rank last week.
India’s central bank had asked local banks for details of their exposure to the Adani group of companies, said sources.
Citigroup’s (Citi) wealth unit had also stopped extending margin loans to its clients against securities of Adani group, said a source. Citi declined to comment.