#Adani Enterprises Share Controversy

[jaiminiofficial]

Adani Enterprises Share Price & News | अडानी एंटरप्राइजेज शेयर

Adani Enterprises Share | अडानी एंटरप्राइजेज शेयर Adani Enterprises Share Price & News | अडानी एंटरप्राइजेज शेयर अदानी एंटरप्राइजेज लिमिटेड एक भारतीय बहुराष्ट्रीय सार्वजनिक रूप से सूचीबद्ध होल्डिंग कंपनी है और अदानी समूह का एक हिस्सा है । इसका मुख्यालय अहमदाबाद में है और मुख्य रूप से कोयले और लौह अयस्क के खनन और व्यापार में शामिल है । अपनी विभिन्न सहायक कंपनियों के माध्यम से, हवाईअड्डा…

[mariacallous]

A staggering sell-off of the stocks of Indian conglomerate Adani Group was sparked last week by a report released by Hindenburg Research that raised questions about the group’s debt levels and use of tax havens. The Adani Group’s stocks declined more than 50 percent in the aftermath of the report’s publication, and those declines have had a massive effect on the wealth of the company’s namesake, Gautam Adani, who had previously been the world’s third-richest person and Asia’s richest overall. The Adani Group has denied the allegations, saying they have “no basis.” But the controversy has focused attention on the group’s central role in the Indian economy and its founder’s close relationship with Indian Prime Minister Narendra Modi.

What accounts for Adani’s rise in the first place? What is the basis for his close relationship with Modi? And what role does the Adani Group play in the Indian economy? Those are a few of the questions that came up in my recent conversation with FP economics columnist Adam Tooze on the podcast we co-host, Ones and Tooze. What follows is an excerpt, edited for length and clarity.

For the full conversation, look for Ones and Tooze wherever you get your podcasts.

Cameron Abadi: Adani has a pretty impressive rags-to-riches story. What were the key turning points on his path to great wealth?

Adam Tooze: It’s a fascinating story. He’s born in 1962, as India’s demographic boom is cresting. And not in a poor family by any means but to a small businessman, a small trading family. He initially embarked on an undistinguished career in school and then headed to commercial college but then dropped out. And in 1978, he entered the diamond trade, which is large in the province of Gujarat, and then sets himself up as a sort of export-import trader. And from the ‘90s onwards, he embarks on the infrastructure projects— management of ports, the construction of railway systems—which will make him famous, indeed legendary. So it’s the story not really of a kind of business genius who has some technological, gee-whiz idea that conquers the world. It isn’t a story of the magnificent technical excellence of Indian IT services, for instance. It’s a more classic story of the accumulation of capital by means of trade, trading on margins, basically, and then a shift into infrastructure.

And this is where the key element in the Adani story comes in, which is politics and the politics of connections and clientelism. And that’s really the decisive moment in his career where, you know, after the ghastly pogroms against the Muslim population of Gujarat in 2002, when Modi is under massive pressure, Adani solidarizes himself with Modi against, at the time, the prevailing mood of Indian business opinion. He in fact breaks ranks and forms his own industrial association, or business association, and on that basis really forms this lasting connection to Modi that is really the distinguishing feature of his business enterprise.

And that’s what has enabled this utterly explosive growth. I mean, this was a still moderately sized business in the ‘90s and the early 2000s, which has now become absolutely a globally scaled enterprise and the foundation for huge wealth for Adani and his family.

CA: What exactly links Adani and Modi’s [Bharatiya Janata Party] BJP party on an ideological level? Do they share a vision for what kind of country India should be? Or is this relationship an expression of a kind of material division of labor—Adani as the economic arm of the Indian state under the BJP in service of further economic development?

AT: I think the key phrase is nation-building—both words in that hyphenated term. So national projects aiming for truly comprehensive scale, which—when you’re dealing with a subcontinental state like India with a population that India has—is a gigantic undertaking.

So for the Adani Group to establish itself the way it has as the key power producer in the private sector, absolutely key player in port infrastructure on the national scale, and absolutely key player in airports—air mobility being key in a country the size of India—now moving into a new position in cement, this is creating a national economy out of the relatively decentralized provincial structures, which until a remarkably recent date dominated the Indian economy. And for the second element—the building part of nation-building—delivery is the absolutely key thing because if there’s one problem the Indian state machine has, it is the capacity to deliver. They have a chronic problem. There is no shortage of brilliant minds that can conceive of wonderful plans but actually implementing policy down to the village level and across the entirety of this vast country, that’s a huge challenge.

And I think it’s the combination of those two elements that really has forged the almost mythic relationship between Modi on the one hand and these two big business groups: [Indian businessman Mukesh] Ambani on the one hand and Adani on the other—both from Gujarat. And I think that’s another element that you could say was also a kind of ideological narrative, which is the talk of the Gujarat model. To put it crudely, you might say it was a sort of Indian Thatcherism or an Indian neoliberalism. It was a break, as in the case of [former British Prime Minister Margaret] Thatcher, driven from within the government machine, in this case in the province of Gujarat, against the rather top-down, state-directed model inherited from the Nehruvian period of early independence, the 1940s to 1950s, where India toyed with socialist, social-democratic planning models. And this is replaced in the ‘90s and the 2000s by this Gujarat model, which is a kind of open embrace of a productive powerhouse relationship between big business interests and government.

CA: Could you summarize the allegations against Adani from Hindenburg Research—and what does this episode reveals about the role played by short sellers like Hindenburg Research in the global capitalist economy?

AT: First, we can’t stress strongly enough, the Adani Group vigorously disputes the allegations. But the allegation is that through a network of essentially family-linked holding companies held to a considerable extent outside India, the Adani Group dramatically inflated the value of its stock. So around about 75 percent of Adani shares are held by other businesses, according to Hindenburg Group, which are in a sense simply postbox entities situated in offshore places like Mauritius, for instance, which drive up the stock value of the Adani Group. And the significance of that is not only that it brings paper gains for the holdings of the key members of the family, but much more importantly, what it enables them to do is to leverage those high stock values, to get bank loans and to get credit, which then turns into real purchasing power with which you can then launch large investment projects, buy out rivals, and actually reshape India’s political economy.

Now the Hindenburg group in pursuing this case is, in a sense, involved in playing a game in India that it has played elsewhere. They’re an interesting, very small research outfit that specializes in doing—I’m not sure I would call them regulators. It’s a little bit more like private investigator kind of work. They seize on a cause. They then decide that a company is massively overvalued. They do their homework. They then take short positions and through the force of their research attempt, as it were, to drive the value of the firm down, which generates large profits on their short positions.

The sophisticated Indian response, I think, is that there’s really an element of culture clash here. There aren’t many players in the Indian financial markets who imagine that the value of the Adani Group is determined in a conventionally free and fair way because people aren’t naive about the way in which India’s political economy operates. And so the sophisticated rationale for what’s going on in India is that Indian financial investors know that this is part of the Adani Group’s business plan. And with the backing that they enjoy in political circles, they are not just too big to fail but essentially identified with the Modi-ite project. So long as that is hegemonic in Indian politics, these businesses cannot fail. So there is in fact very little risk that you won’t get paid back. And to that extent, no harm, no foul.

But what actually is happening is that India’s economy is becoming progressively more and more distorted by this self-sustaining linkage between high market valuations, large credit, and deep political connections constituting a too-big-to-fail kind of juggernaut that can’t be stopped. And the negative consequence of that is not in terms of an investor protection case—if you’re on this train, you’re probably going to be fine. The real issue is what it does to the Indian economy and what it does, by implication, also to Indian society.

CA: What does Adani reveal about the role of the super wealthy in countries at India’s stage of development? Does Adani act as an engine of domestic development through reinvestments in the country or through philanthropy? Or is it instead that he takes his money out of the country and insulates himself from the Indian economy?

AT: What’s really interesting is that this is not, I think, as far as we’re able to assess anyway, a Russian-style model. I mean, this is an immensely wealthy family. They will have property in many parts of the world. But this is not a model like the Russian oligarch one, where you pump oil and gas in Russia, you sell it for dollars, and then you stash those dollars in a Swiss bank account. That is the kind of classic model of truly offshore oligarchic finance that is draining resources from a country. And as far as we’re able to assess, the Adani Group is using offshore money to sustain and double down on their positions in India. The purpose is to raise more credit so as to be able to do more investment in India. So this is not an instance, I think, of a group that is operating primarily in an extractive mode.

The Adanis have also become very heavily involved in philanthropy. For the occasion of Gautam’s 60th birthday, they launched one of the largest philanthropic initiatives that India has seen since the glory days of the Tata family. They pledged $7.7 billion in 2022���so very considerable amounts of money in the kind of league of [billionaire] Bill Gates at that stage.

CA: What does Adani’s career and his wealth tell us about the Indian economy in general? What kind of capitalist country is India exactly?

AT: If you go to Delhi and you speak to economists, that’s the question that preoccupies them. And the upside story, the one that the proponents of this system favor, is that it’s a South Korean-style, chaebol-type system where you have these very, very powerful conglomerate families like the Samsung Group. So that’s the most favorable vision, that these powerhouse private, public-private partnerships will be the drivers of an Indian industrial development or modernization like that of South Korea.

And on the darker end of the spectrum, the fear is that you could see the development of a crony capitalism that shifts ever more towards the more ominous sort of Russian development where you have quite fundamental erosion of the rule of law. The real worry, I think, is that you could see a much more fundamental degeneration of competition, of civil society control, and that is why many people regard the acquisitions by these big groups in the media space as being so worrying because one of the consequences of that is that freedom of speech is increasingly curtailed and even tenure in universities becomes problematic.

But setting all of these big sort of historical analogies aside, ultimately, the rationale and the acid test of this system will be what political scientists call output legitimacy. Can they get the job done? Are they actually going to be able to deliver on a raft of big infrastructural projects that India needs over the next decades—notably, for instance, in the renewable energy and the sustainable energy space? In the end, these corporate stories have to translate into the infrastructure that enables that more broadly based macroeconomic growth.

[businessviewpointmag]

Japanese Banks Maintain Support for Adani Amid Global Reassessment

https://businessviewpointmagazine.com/wp-content/uploads/2024/11/1-Japanese-Banks-Maintain-Support-for-Adani-Amid-Global-Reassessment-Source-economictimes.indiatimes.com_.jpg

Latest News

News

Stock Market Update: Nifty 50 Movement, Trade Setup, and Top Stock Picks

News

Markets on Edge: Indian Indices Dip, Bitcoin Hits Record, and Global Trends Shape the Week Ahead 

News

BlueStone Jewellery Plans ₹1,000 Crore IPO with Fresh Issue and OFS

Source: economictimes.indiatimes.com

Japanese Lenders Stay Steadfast

Japan’s major financial institutions, including Mizuho Financial Group, Sumitomo Mitsui Financial Group, and Mitsubishi UFJ Financial Group (MUFG), are standing firm in their support for Gautam Adani’s conglomerate despite US bribery charges against the Indian billionaire and his associates. While global banks such as Barclays and Jefferies Financial Group reassess their exposure, the Japanese lenders remain confident in their ties to the Adani Group, citing the conglomerate’s cash-generating assets and strong ties with the Indian government.

Insiders revealed that the banks do not anticipate a significant long-term impact from the allegations and are open to providing fresh financing if required. However, spokespeople for the three Tokyo-based banks declined to comment, as did an Adani Group representative. The controversy stems from allegations of a $250 million bribery scheme aimed at securing solar energy contracts in India, which Adani has dismissed as baseless. The company is engaging with lenders and investors to reaffirm its position and address concerns.

Global Banks and Investor Caution

In contrast to the steadfast approach of Japanese banks, other international financial institutions have adopted a cautious stance. Barclays, a long-time partner of Adani, has paused new financing arrangements and reduced its direct lending and bond underwriting exposure. Jefferies, which defended Adani during previous allegations, has taken a wait-and-see approach, avoiding new deals until the legal process unfolds. At least two other major US banks have also suspended plans to fund Adani’s projects.

The fallout from the allegations is affecting Adani’s market performance. The conglomerate’s dollar bonds and shares plunged following the US indictment, prompting credit rating agencies, including S&P Global Ratings and Fitch, to downgrade their outlook on Adani companies. Additionally, global firms like TotalEnergies SE and governments like Kenya’s are halting investments and contracts with Adani until the legal implications become clearer.

Adani’s Resilience and Broader Support

Despite the challenges, Japanese banks are not alone in their support for Gautam Adani. Middle Eastern financial institutions, including Emirates NBD Bank PJSC, have also expressed confidence in the conglomerate’s ability to manage its obligations. These banks remain committed to their existing projects and are open to future collaborations, citing robust due diligence and the solid performance of Adani’s asset-heavy businesses, such as ports and airports.

Experts attribute the resilience of Japanese and Middle Eastern banks to their strategic interest in high-growth emerging markets like India. “Japanese and Middle Eastern banks see an opportunity to align with the growth potential of Indian conglomerates like Adani,” said Ashutosh Mishra, head of research at Ashika Stock Broking Ltd.

Although Adani Enterprises’ stock initially dropped 23% following the US charges, it has since partially recovered. The group maintains that Gautam Adani and his associates are not implicated under the US Foreign Corrupt Practices Act, offering a glimmer of hope for investors and partners. However, as global scrutiny intensifies, the coming months will be pivotal in shaping Adani’s financial relationships and market standing.

Did you find this article helpful? Visit more of our blogs! Business Viewpoint Magazine

[adanistockmanipulation]

The Adani Group has once again made an entry into the equity market after the Hindenburg crisis which held the global conglomerate responsible for Adani stock manipulation.

[adanicase]

Asia's top business leaders, Gautam Adani and Mukesh Ambani, are focused on winning over retail investors to strengthen their hold on India's financial market. Adani Enterprises is making its first bond sale to small investors, while Reliance Industries has announced a bonus share issue to boost shareholder value. These strategies aim to attract new funding sources and enhance financial growth for both conglomerates. Adani seeks to rise above past controversies, while Ambani continues to reward his shareholders, reflecting a shared goal of bolstering trust and long-term economic prosperity in India's retail sector.

[flourishloom]

Unveiling the Kotak Mahindra Bank and Hindenburg Saga: What Really Happened?

Source: Internet In a gripping turn of events, Kotak Mahindra Bank has found itself at the center of a sensational controversy involving the short-selling of Adani Enterprises’ shares. This unfolding drama, triggered by a damning report from Hindenburg Research, has led to a wave of investigations and clarifications. Here’s the story behind the headlines.The Hindenburg Report: A Market…

[best2daynews]

Adani vows more equity with SBI for Australia project - Times of India

MUMBAI: Adani Group chairman Gautam Adani has pledged more shares of his companies worth Rs 1,038 crore as collateral for the Carmichael coal mine and rail project in Australia as part of his credit line agreement with SBI.His flagship Adani Enterprises, which last week called off its Rs 20,000-crore follow-on public offering (FPO) after the Hindenburg Research report controversy, pledged 0.35%…

[jaeame-blog]

Adani Power carves out arm for Mundra business | Adani

New Delhi: Shares of Adani Enterprises on Tuesday closed up 8.63% after the Adani Group gave the final investment approval for its Carmichael coal mine project in Australia. Environmental activists voice their opposition outside Parliament House in Brisbane to Indian miner Adani's proposed 21 billion Australian dollar Carmichael coal mine. Weakness in global equity markets forced the domestic equity market to snap a two-day gaining streak on Tuesday. India's Adani Enterprises has given the final investment approval for a controversial multibillion dollar coal mine in Australia.

New Delhi, Jun 6 Adani Power board today approved a proposal to hive off its flagship Mundra power station to its subsidiary so that it can focus on investment and power generation separately. After crossing the 9,700 mark for the first time in early trade, NSE's Nifty settled 37.95 points, or 0.39 per cent, down at 9,637. But concerns about Great Barrier Reef protection have been raised after Indian company Adani signed off on the $US5 billion first stage of the Galilee Basin project.Speaking at the opening of the company's North Queensland headquarters in Townsville yesterday, Adani Australia chief executive Jeyakumar Janakaraj said it was a momentous occasion. "We have been resilient to a lot of changes that have happened. PERTH - Indian major Adani has pulled the trigger on the $16.5-billion Carmichael coal and rail project, in Queensland, announcing a positive final investment decision just days after striking a tax deal with the state government.

[wionews]

Adani approves investment in Australian coal mine, shares up 7.5%

Shares of Adani Enterprises today surged 7.5 per cent after the Adani Group gave the final investment approval for its Carmichael coal mine project in Australia.

The stock zoomed 7.18 per cent to Rs 126.10 on BSE.

At NSE, shares of the company soared 7.48 per cent to Rs 126.30.

"I am proud to announce the project has Final Investment Decision (FID) approval which marks the official start of one of the largest single infrastructure-- and job creating -- developments in Australia's recent history," Adani Group Chairman Gautam Adani said.

This is a historic day for Adani, a historic day for regional Queensland, and a historic day for Indian investment in Australia, he said.

The announcement comes just days after the Adani Group agreed to pay royalties on coal produced from its project after it struck an agreement with the Queensland government to help the controversy-hit project move forward.

Adani said the Carmichael projects will generate 10,000 direct and indirect jobs, with pre-construction works starting in September quarter of 2017. 

(PTI) 

]]>

[adanicase]

 The company has already signed the share purchase agreement with OCIPL for an enterprise value of INR 56.25 crore, which will be paid in cash. This will allow the company to enjoy enhanced business profitability. The controversies of Adani shares overleveraged will come to an end.

[adanicase]

The corporation intends to construct nine data centers with a total capacity of one gigawatt by 2030, even as it deals with the Adani shares overleveraged controversy.

[adanicase]

Even with the Adani shares overleveraged controversy, Adani Enterprises, the Adani Group’s flagship firm, increased by more than 2% to Rs 2,494 on August 10, 2023, with a total worth of Rs 2.85 lakh crore.

[jaeame-blog]

Adani Power carves out arm for Mundra business | Adani

New Delhi: Shares of Adani Enterprises surged almost 9 per cent today, adding Rs 1,116 crore to its market valuation, after the Adani Group gave the final investment approval for its Carmichael coal mine project in Australia. New Delhi: Shares of Adani Enterprises on Tuesday closed up 8.63% after the Adani Group gave the final investment approval for its Carmichael coal mine project in Australia. Weakness in global equity markets forced the domestic equity market to snap a two-day gaining streak on Tuesday. After crossing the 9,700 mark for the first time in early trade, NSE's Nifty settled 37.95 points, or 0.39 per cent, down at 9,637.

PERTH - Indian major Adani has pulled the trigger on the $16.5-billion Carmichael coal and rail project, in Queensland, announcing a positive final investment decision just days after striking a tax deal with the state government. Environmental activists voice their opposition outside Parliament House in Brisbane to Indian miner Adani's proposed 21 billion Australian dollar Carmichael coal mine. But concerns about Great Barrier Reef protection have been raised after Indian company Adani signed off on the $US5 billion first stage of the Galilee Basin project.New Delhi, Jun 6 Adani Power board today approved a proposal to hive off its flagship Mundra power station to its subsidiary so that it can focus on investment and power generation separately. Analysts expect Adani Power to consider a strategic debt restructuring or S4A for the Mundra subsidiary.

[jaeame-blog]

Adani Power carves out arm for Mundra business | Adani

On Tuesday, Queensland Premier, Annastacia Palaszczuk, also officially opened Adani's Regional Headquarters in Townsville from where the company will oversee the construction and operations of the project. New Delhi: Shares of Adani Enterprises surged almost 9 per cent today, adding Rs 1,116 crore to its market valuation, after the Adani Group gave the final investment approval for its Carmichael coal mine project in Australia. Environmental activists voice their opposition outside Parliament House in Brisbane to Indian miner Adani's proposed 21 billion Australian dollar Carmichael coal mine. Weakness in global equity markets forced the domestic equity market to snap a two-day gaining streak on Tuesday.

New Delhi: Shares of Adani Enterprises on Tuesday closed up 8.63% after the Adani Group gave the final investment approval for its Carmichael coal mine project in Australia. Analysts expect Adani Power to consider a strategic debt restructuring or S4A for the Mundra subsidiary. Speaking at the opening of the company's North Queensland headquarters in Townsville yesterday, Adani Australia chief executive Jeyakumar Janakaraj said it was a momentous occasion. "We have been resilient to a lot of changes that have happened.But concerns about Great Barrier Reef protection have been raised after Indian company Adani signed off on the $US5 billion first stage of the Galilee Basin project. India's Adani Enterprises has given the final investment approval for a controversial multibillion dollar coal mine in Australia.