Adani market losses soar above US.Picorn

Adani market losses soar above US.Picorn

NEW DELHI: Adani's market losses soared above US$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$£$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€

The sudden withdrawal of Adani Enterprises' share sale marks a dramatic setback for founder Gautam Adani, a school dropout-turned-billionaire whose fortunes have gone up rapidly in recent years, but have plunged in just a week after a critical research report by US-based short-seller Hindenburg Research.

Aborting the share sale sent shockwaves across markets, politics and business. Adani shares plunged, opposition lawmakers called for a more thorough investigation and India's central bank sprang into action to check on the exposure of banks to the group. Citigroup's wealth unit stopped making margin loans to clients against Adani Group securities.

Adani has forged partnerships with foreign giants such as France's TotalEnergies and attracted investors such as Abu Dhabi's International Holding Company as he pursues a global expansion from ports to the power sector in recent years.

Adani called off the share sale late on Wednesday after Hindenburg's criticism intensified its grip, despite it being fully subscribed a day earlier.

Adani may have caused a confidence crisis in Indian shares, and that could have broader market implications, said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

Adani Enterprises' shares fell 27 per cent on Thursday, closing at their lowest level since March 2022, at 27 per cent of their lowest level since March 2022.

Other group companies lost ground, with 10 percent losses at Adani Total Gas, Adani Green Energy and Adani Transmission, while Adani Ports and Special Economic Zone shed nearly 7 percent.