Know how the Fall of Adani took place and how it affected Indian Stock Market
This New Year started with the surprise fall of Adani, India’s most rapidly grown businessman, who became India’s national business tycoon even surpassing Ambani in the last 8 years. The unusual growth of Gautam Adani is said to be because of the Modi government’s push, which seems quite visible as Indian oil, Indian airports etc. are now Adani enterprises.
Adani went from the 609th rank on the global rich list in 2014 to be the world’s 3rd wealthiest man in 2022. Now, after Hidenburg’s report against the Adani group made him fall to the 30th spot in the world billionaire list. This report has called Adani, a ‘Corporate Conman in the History’.
Due to the Adani stock crash, the government entity, LIC has lost more than 30,000 crores. Recently, British Billionaire and philanthropist George Soros in his speech at the 2023 Munich Security Conference said, “Modi and business tycoon Adani are close allies; their fate is intertwined. Modi has to answer questions from foreign investors. It may lead to Modi govt’s fall.”
Government agencies like SEBI and RBI are mum on the Adani issue, their statements are very common without any emphasis on how to handle this crisis. Similarly, Indian electronic media is also silent on this issue, with few debates on the news channels. Whenever people have been told that the Adani controversy is subsiding, new losses due to the Adani stock crash emerge. Though the opposition is taking up the issue strongly, it is also divided. Only Congress leader Rahul Gandhi is repeating the Adani-Modi relationship issue on every forum including the recent Meghalaya elections. Congress MP Rahul Gandhi questioned Adani and PM Modi’s relationship in the parliament but was schooled by PM Modi over Congress’ past scams.
The question arises, Will Adani’s imbroglio become the precursor to the fall of the Modi Govt in the 2024 Lok Sabha elections?
National & Global Effect:
- The LIC stock has nosedived by nearly 17% on Dalal Street and its shareholding value in Adani stocks has declined by more than ₹48,600 crores.
- Adani Stock Crash Deepens as investors lose Rs. 51,000 Crore in two weeks.
- Adani Green has been removed from under-criteria observation by the American credit rating agency S&P Global.
- Forbes comes out with a report claiming “There’s evidence that the Adani Group Likely bought into its own $2.5 billion share sale”.
- Gautam Adani was the world’s third and Asia’s richest man a month before but now his wealth plunged by $80 billion and the tycoon slipped to the No.30 spot on the World Billionaire List.
Read more- Significant SC Judgements in February 2023, that stand out
Timeline of Adani Group’s Fall:
January 24: Hindenburg Research released its report on the Adani Group. The report claimed to be based on research spanning over two years, alleged that Adani Enterprises and other group companies were “engaged in a stock manipulation and accounting fraud for decades”.
January 25: After the release of the Hindenburg report, Adani Group entities faced sharp erosion in the stock market. Adani Group in a statement refutes the charges, saying that it will take legal action against Hindenburg. The group was confident of the FPO seeing a full subscription.
January 29-30: Adani group releases a 413-page statement, calls the Hindenburg report a “calculated attack” on India, and terming allegations a “lie”. Hindenburg rejects the response, saying fraud cannot be obfuscated by nationalism.
January 31: Adani Enterprises FPO is fully subscribed.
February 1: Securities and Exchange Board of India (SEBI), has launched a probe into the $86 billion wipeout of Adani Group stocks.
Adani Group calls off the FPO of Adani Enterprises late at night.
Like this post?
Register at One World News to never miss out on videos, celeb interviews, and best reads.
