Seven listed Adani Group companies saw a $112 billion sell-off in less than two weeks as the opposition extended protests.
Lawmakers from India’s main opposition party have kicked off protests at several state-owned companies over the crisis at Adani Group, their seven listed companies have seen a sell-off others drove their market losses to $112 billion in less than two weeks.
Members of the Congress party on Monday protested outside several offices of state insurers Life Insurance Corporation (LIC) and State Bank of India (SBI), both of which have relating to Adani Group companies.
At one of the protest sites in Mumbai, people held up placards that read “Save SBI”, TV footage showed.
The crisis was triggered by a January 24 report by US-based short seller Hindenburg Research that accused the Adani . corporation stock manipulation, unsustainable debt and the use of tax havens.
Adani Group, one of India’s leading conglomerates, dismissed the criticism and denied wrongdoing in detailed rebuttals, but that failed to arrest an undiluted drop in its stock.
In the devastating aftermath of the Hindenburg report, the flagship of the Adani Group is Adani Enterprises Ltd. forced to give up a $2.5 billion stock sale last week and Group Chairman Gautam Adani lose crown became the richest man in Asia and dropped in the global rich rankings.
Gautam Adani and Indian Prime Minister Narendra Modi are from the same state. Adani has denied allegations by Modi’s opponents that he has benefited from their close relationship, and Modi’s government has denied it. Allegedly supporting Adani.
As Adani’s shares tumbled lower and created a gloom in Indian markets last week, opposition lawmakers disrupted parliamentary proceedings on Monday and demanded an investigation. check.
Credit Rating Warning
The stock market plunge sparked a flurry of credit rating warnings on Friday with Moody’s saying it could have trouble raising capital and S&P cutting its outlook for two companies. Group.
Even efforts by regulators and governments to reassure panicking investors appear to be fruitless.
The Reserve Bank of India on Friday said the country’s banking system remains resilient and stable. The next day, India’s market regulator said the country’s financial markets remained stable and continued to operate in a transparent and efficient manner.
SBI said on Friday that it was not concerned about exposure to the Adani Group, but that further funding of its projects would be “assessed on its own merits”.
India’s divestment secretary Tuhin Kanta Pandey told Reuters news agency on Friday that LIC shareholders and customers should not worry about exposure to Adani Group.
LIC has a 4.23% stake in flagship Adani Enterprises, while its other investments include a 9.14% stake in Adani Ports and Special Economic Zones, Reuters reported.
Shares of Adani Enterprises, before rising more than 1,000% in five years, fell 9.6% on Monday, bringing its market capitalization loss to nearly $28 billion since the report was released. .
Adani Transmission Ltd fell 10%, while Adani Green Energy Ltd, Adani Total Gas Ltd, Adani Power and Adani Wilmar fell about 5%.
Adani Ports was the only stock bucking the trend, up 1.2%.
