Adani empire tumbles again with stock sale hanging in the balance

Investors dumped more Adani shares on Tuesday, deepening the carnage at India's biggest conglomerate which has already lost around $70 billion in value after allegations of "brazen" corporate fraud. The latest losses came as a stock sale aimed at raising $2.5 billion was due to close later in the day, with only 21 percent of the offer subscribed by midday, according to the firm. Founder Gautam Adani, 60, was the world's third-richest person last week but has slipped to eighth position on Forbes' tracker after his personal fortune lost more than $36 billion since. Shares in Adani Total Gas saw the biggest fall on Tuesday with trading halted for another session after diving 10 percent in the morning. The natural gas distribution company -- of which France's TotalEnergies owns 37.4 percent -- has lost 45 percent in market value over the last week. Adani Power and Adani Wilmar also hit their circuit breakers after falling five percent each, while Adani Green Energy traded 2.58 percent lower. Adani Transmission and Adani Ports inched higher and the flagship Adani Enterprises regained some lost ground, trading 3.5 percent higher. But the Adani Enterprises shares remained well below the 3,112-3,276 rupees price range set for the Follow-on Public Offer (FPO) -- making them cheaper to buy in the open market. Abu Dhabi-based International Holding Company (IHC) gave the group a vote of confidence however, saying Monday it would buy 16 percent of the shares on offer, paying $400 million to do so. This makes up most of the 21 percent that the Indian firm said was subscribed by midday. - 'Brazen manipulation' - The slump in Adani's stocks was sparked by a report from US investment group Hindenburg Research that last week alleged a "brazen stock manipulation and accounting fraud scheme over the course of decades". Adani's conglomerate said it was the victim of a "maliciously mischievous" reputational attack and on Sunday issued a 413-page statement that it said rebutted Hindenburg's claims. Dubbing Hindenburg the "Madoffs of Manhattan" -- a reference to crooked financier Bernie Madoff -- the statement said the researchers' allegations were "nothing but a lie". "This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," Adani said. Hindenburg said in response to Adani's statement that "India's future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation". It added that Adani's response only included about 30 pages focused on issues related to its report.

Adani empire tumbles again with stock sale hanging in the balance

DISCOVER MORE

India markets regulator asks top 100 companies to confirm or deny market rumours from Oct.1

India markets regulator approves backstop fund for Indian corporate debt market

India markets regulator OKs reforms giving more say to investors

India markets regulator allows private equity firms to own mutual fund companies

Google scores partial victory in Android antitrust case in India

Russia's Rosneft signs deal to boost oil supplies to India

Fitch says two Adani entities face contagion risks: India

India pitches 'affordable' military hardware to Africa

Five African cities hold more than 50% of continent's private wealth

AI may affect 300mln full-time jobs: Goldman Sachs

UAE approves 24 national initiatives to double re-export industry

BP and UAE's ADNOC bid for stake in NewMed Energy

UAE banking sector to remain stable in 2023 – KPMG

Mideast Stocks: Gulf stocks end mixed as investors remain cautious

Egypt: Edita to distribute $12.9mln cash dividends for 2022

UAE: Al Ramz’s shareholders nod to $9mln dividends for 2022

Hong Kong leads Asian markets higher on Alibaba boost

Mideast Stocks: Gulf markets extend gains on rising oil prices

LATEST VIDEO

VIDEO: Why is China's Belt and Road Initiative facing setbacks?

ZAWYA COVERAGE

Middle East, Asia-Pacific airfares surge 53%, pose threat to recovery of aviation sector - ACI

DP World develops edible oil terminal at Port of Berbera

Maldives airport temporarily shut down after Flydubai aircraft suffers tire burst on landing

Real GDP growth in the GCC region will slow to 3.5% in 2023

DFM introduces 'Omnibus Accounts' to enhance market access

Portugal's rents hit record high amid cost of living crisis

Egypt to raise allocation for food subsidies by 20% in FY 2023/24 draft budget

IMF and Seychelles reach over $100mln staff-level agreement

Nuclear row looms over EU renewable energy talks

THE BRI REPORT

China is reshaping the Belt and Road Initiative ahead of a post-pandemic era

DISCOVER MORE

LATEST VIDEO

ZAWYA NEWSLETTERS

ZAWYA COVERAGE