Adani Group's market losses hit Rs 8 lakh crore as stocks sink after botched share sale

News Network
February 2, 2023

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New Delhi, Feb 2: India's Adani group shares plunged on Thursday after the Gautam Adani-led conglomerate shelved a $2.5 billion share sale amid a turbulent market, bringing its cumulative market capitalisation losses to $100 billion since last week's short-seller attack.

The withdrawal of Adani Enterprises' share sale marks a dramatic setback for Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years in line with the stock values of his businesses.

Adani on Wednesday called off the share sale as a stocks rout sparked by US short-seller Hindenburg's criticisms deepened, despite the offer being fully subscribed on Tuesday. In the fallout of the short-seller's attack, Adani has also lost his title as Asia's richest man.

The group's flagship firm - Adani Enterprises - plunged 10 per cent after opening higher on Thursday. Other group companies - Adani Ports and Special Economic Zone, Adani Total Gas, Adani Green Energy and Adani Transmission - fell 10 per cent each, while Adani Power and Adani Wilmar dropped 5% each.

The stocks tumble and shelving of the share sale mark an embarrassing turn of events for the billionaire who has forged partnerships with foreign players in his global expansion of businesses that stretch from ports to mining to cement.

Adani is now the world's 16th richest, as per Forbes' list, down from third rank last week.

India's central bank has asked local banks for details of their exposure to the Adani group of companies, government and banking sources told Reuters on Thursday. CLSA estimates that Indian banks were exposed to about 40 per cent of the 2 trillion rupees ($24.53 billion) of Adani group's debt in the fiscal year to March 2022.

Earlier this week, the Adani group said it had the complete support of investors, but investor confidence has tapered in recent days.

Citigroup's wealth unit has stopped extending margin loans to its clients against securities of Adani group, a source with direct knowledge of the matter said on Thursday. Citi declined to comment.

Hindenburg's report last week alleged an improper use of offshore tax havens and stock manipulation by the Adani group. It also raised concerns about high debt and the valuations of seven listed Adani companies.

The Adani group has denied the accusations, saying the short-seller's allegation of stock manipulation has "no basis" and stems from an ignorance of Indian law. The group has always made the necessary regulatory disclosures, it added.

As shares plunged after the Hindenburg report, Adani managed to secure the share sale subscriptions on Tuesday even though the stock's market price was below the issue's offer price. But on Wednesday, stocks plunged again.

In a late night announcement on Wednesday, Adani said he was withdrawing the share sale as the company's "stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the company’s board felt that going ahead with the issue will not be morally correct." 

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News Network
March 12,2023

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Kozhikode, Mar 12: The CBI has brought back a kidnapping-and-murder accused wanted by the Kerala Police through extradition from Saudi Arabia, the 33rd fugitive extradited since last year, under "Operation Trishul" on Sunday, officials said.

Mohammed Haneefa Makkata, a fugitive with an Interpol Red Corner Notice (RCN) issued against him, was wanted by the Kerala Police in connection with the abduction and killing of one Karim in 2006, a case that was probed by the Kunnamangalam police station in Kozhikode, the officials said.

He was located in Saudi Arabia on the basis of the RCN, they added.

The Interpol unit of Saudi Arabia informed the Central Bureau of Investigation (CBI) about Makkata's location and sought a team to take him back to India, the officials said.

The CBI passed on the information to the Kerala Police, which brought the accused back to the country from Saudi Arabia on Sunday.

Makkata is the 33rd fugitive brought back to India since January 2022, the officials said.

He was brought back under "Operation Trishul" launched by the CBI.

Under the operation, criminals and proceeds of crime are traced in foreign countries with the help of the Interpol and brought back, the officials said, adding that the federal agency has brought back 27 fugitives in 2022 and six in 2023.

The CBI is using a three-pronged strategy to corner fugitives under "Operation Trishul", which is giving rich dividends to Indian agencies.

The first hit is locating a fugitive through the Interpol and seeking deportation or extradition from the member country where they are holed up.

The agency also mobilises Interpol mechanisms -- StAR Global Focal Point Network, Financial Crimes Analysis Files and other channels -- to identify dispersal of proceeds of crime by financial criminals so that subsequent steps may be initiated through formal channels to recover such proceeds of crime.

The third strategy involves dismantling the support networks by generating criminal intelligence on shell companies, fraudulent transactions, money mules, and the co-accused located globally, so that the law-enforcement agencies concerned may be informed through the Interpol for taking suitable action in accordance with their domestic legal frameworks.

More than 30 high-profile criminals accused of committing financial frauds in India, including Nirav Modi, Mehul Choksi, Nitin Sandesara, and Jatin Mehta, have found sanctuaries abroad. Agencies are trying to bring them back, with a varied degree of success so far.

According to the Interpol, Indian agencies are looking for 276 fugitives globally through RCNs, including some high-profile economic offenders. 

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News Network
March 13,2023

An IndiGo Airline Delhi-Doha flight, 6E-1736, was diverted to Karachi airport in Pakistan after a medical emergency. The passenger, a Nigerian, was declared dead on arrival by the airport medical team, IndiGo Airline said.

“IndiGo flight 6E-1736, operating from Delhi to Doha was diverted to Karachi due to a medical emergency on board. Unfortunately, on arrival, the passenger was declared dead by the airport medical team,” IndiGo said.

A Civil Aviation Authority spokesperson in Karachi confirmed that a flight of an Indian airline was going to Dubai from Delhi when the health of a passenger worsened mid-flight.

The pilot of the IndiGo flight sought emergency landing permission due to a medical emergency, which was granted by the Air Traffic Controller at the Karachi airport.

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News Network
March 20,2023

Mangaluru, Mar 20: A youth who immolated himself succumbed to the injuries sustained, at Muchilakodi under the limits of Konaje police station limits on the outskirts of the city on Sunday.

The deceased has been identified as Harish (33), son of Babu Shettigar of Vittal Kanyana. He was working as a gardener at Infosys campus at Mudipu.

Harish had married a young woman from Siddakatte Sangabettu last year. His wife is now said to be seven months pregnant. Harish had even planned to hold a baby shower function for his wife. 

However, his wife reportedly started avoiding Harish for past couple of months. 

On March 12, Harish had called his cousin Ramesh Shettigar of Konaje and had said he found ash and iron piece in his bag and suspected black magic by someone. Ramesh had then told Harish that he would talk about it on March 19. 

Accordingly, Harish had visited Ramesh’s house on Sunday, March 19. Commissioner of Police Kuldeep Kumar R Jain said that Harish reportedly poured petrol over himself and also on his wife. He had suffered 75 per cent burn injuries. As his wife had come aside when he poured petrol, she is safe.

Immediately the police were informed and Harish was rushed to the hospital in ambulance but he breathed his last before reaching the hospital. It is learnt, despite suffering burn injuries, Harish had himself boarded the ambulance.

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