Business Standard - India's Adani group shares sank on Thursday after it abandoned its flagship company's $2.5 billion stock offering, swelling the conglomerate's market losses to more than $100 billion and sparking worries about their potential systemic impact. Read more
Since Hindenburg report was released on January 24th, group companies have lost nearly half their combined market value. Adani Enterprises - described as an incubator of Adani's businesses - alone has lost $24 billion market capitalization.
Adani, 60, is also no longer Asia's richest person, having slid in the rankings of world's wealthiest to 16th, as per Forbes' list from 3rd last week.
As an impact to this, India's central bank have asked local banks for details of their exposure to the Adani group of companies. CLSA estimates that Indian banks were exposed to about 40% of 2 trillion rupees of Adani group's debt in the fiscal year to March 2022.
Citigroup's wealth unit has stopped extending margin loans to its clients against securities of Adani Group and decided to cut the loan-to-value ratio for credit against Adani securities to zero on Thursday, said a source.
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