Adani's market losses top US$100 billion as crisis shockwaves spread

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NEW DELHI: Adani's market losses swelled above US$100 billion on Thursday (Feb 2), sparking worries about a potential systemic impact a day after the Indian group's flagship firm

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

In a shock move late on Wednesday, Adani called off the share sale as a stocks rout sparked by Hindenburg's criticisms intensified, despite it being fully subscribed a day earlier. Other group companies also lost further ground, with 10 per cent losses at Adani Total Gas, Adani Green Energy and Adani Transmission, while Adani Ports and Special Economic Zone shed nearly 7 per cent.Since Hindenburg's report on Jan 24, group companies have lost nearly half their combined market value. Adani Enterprises - described as an incubator of Adani's businesses - has lost US$26 billion in market capitalisation.

CLSA estimates that Indian banks were exposed to about 40 per cent of the US$24.5 billion of Adani Group debt in the fiscal year to March 2022. The Congress Party called for a Joint Parliamentary Committee be set up or a Supreme Court monitored investigation, while some lawmakers shouted anti-Adani slogans inside parliament, which was adjourned for the day.Adani made acquisitions worth US$13.8 billion in 2022, Dealogic data showed, its highest ever and more than double the previous year.

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