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
April 25,2024

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Bengaluru: The Congress and BJP will lock horns on the electoral battleground again, in less than a year, in Karnataka as the stage is set for voting in the first phase in 14 Lok Sabha seats on Friday.

It's going to be a straight fight between the ruling Congress and the BJP-JD(S) combine unlike the Assembly elections in May last year which witnessed a triangular contest among the three parties.

The state has a total of 28 Lok Sabha constituencies. The second phase of polling in the remaining 14 seats is on May seven.

A total of 247 candidates -- 226 men and 21 women -- are in the fray for the first phase in most of the southern and coastal districts.

More than 2.88 crore voters are eligible to exercise their franchise in 30,602 polling stations where polling will take place between 7 am to 6 pm.

While the Congress is contesting in all 14 seats, BJP has fielded nominees in 11 and its alliance partner JD(S), which joined the National Democratic Alliance (NDA) in three -- Hassan, Mandya and Kolar.

Besides the three, the segments where elections will be held on Friday are: Udupi-Chikmagalur, Dakshina Kannada, Chitradurga, Tumkur, Mysore, Chamarajanagar, Bangalore Rural, Bangalore North, Bangalore Central, Bangalore South and Chikkballapur.

In the 2019 Lok Sabha polls, Congress and JD(S), which were in alliance and ruling the state then, had secured just one seat each in these 14 segments. The BJP had won in 11 and ensured the victory of a party supported independent candidate in Mandya.

Having scored a thumping victory in the Assembly elections, the Congress now appears determined to put up a strong show.

Karnataka is the most important state for the BJP in south India as it's only here that it had held power in the past. 'Its alliance partner JD(S) is fighting to remain politically relevant, after the Assembly poll drubbing,' a political analyst said.

The Old Mysore region is the Vokkaliga heartland and parts of it have been the traditional bastion of the JDS.  However, the current elections are a battle for survival for JDS.

According to Karnataka Chief Electoral Officer Manoj Kumar Meena, 1.4 lakh polling officials will be on duty for the first phase.

Besides them, 5,000 micro-observers, 50,000 civil police personnel, 65 companies of Central Parliamentary Force and State Armed Police force of other States will also be deployed for security.

All the 2,829 polling stations of Bangalore Rural parliamentary constituency will be webcast, Meena said.

'This is as per the request of our returning officers and observers; so we have given more than double the Central parliamentary force for Bangalore Rural constituency. Seven companies of Central paramilitary forces have been inducted at the constituency since April 22,' he told reporters on Wednesday.

In fact, out of the total 30,602 polling stations in the first phase, 19,701 will be webcast, and 1,370 covered via CCTVs, he said.

Chikkaballapur has a maximum number of 29 candidates, followed by 24 in Bangalore Central, and Dakshina Kannada has the least number - nine.

JD(S) leader H D Kumaraswamy from Mandya, his brother-in-law and noted cardiologist C N Manjunath from Bangalore Rural on a BJP ticket, erstwhile Mysuru royal family scion Yaduveer Krishnadatta Chamaraja Wadiyar from Mysore, also from the BJP, and Deputy Chief Minister D K Shivakumar's brother and MP D K Suresh of Congress from Bangalore Rural, are among the prominent candidates in the fray in the first phase.

Also in the fray are BJP MP Tejasvi Surya from Bangalore South against Minister Ramalinga Reddy's daughter Sowmya Reddy of Congress, Union Minister Shobha Karandlaje on BJP ticket from Bangalore North against former IIM Bangalore professor M V Rajeev Gowda of Congress.

The Congress' performance in the elections, especially in the first phase which covers almost all Vokkaliga-dominated districts, is being seen as a big test of sorts for its state unit chief Shivakumar, who has made no secret of his ambition to become chief minister, amid speculations of change in guard mid-way of the Assembly term.

Stakes are also high for Chief Minister Siddaramaiah, as victory in particular in his home turf—Mysore and Chamarajanagar—is seen as key for strengthening hands, analysts say.

For the JD(S) and its state chief Kumaraswamy, the task is cut out -- to prove that the regional party is still a force to reckon with, particularly in the Vokkaliga dominated Old Mysuru or South Karnataka region.

Both Shivakumar and Kumaraswamy are Vokkaligas, and are engaged in a fierce turf war to consolidate their clout over the dominant community.

It is also seen as a kind of a 'litmus test' for state BJP president B Y Vijayendra, who has the onerous task of helping the party retain its supremacy in the Lok Sabha elections.

Ensuring a BJP sweep is paramount for the son of veteran leader B S Yediyurappa, to consolidate his position and silence critics who have questioned his selection for the post, overlooking seniors and seasoned hands.

The ruling Congress is mostly banking on the implementation of its populist five guarantee schemes. The BJP and JD(S) seem to be leveraging the 'Modi factor' to the hilt.

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News Network
April 23,2024

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The genocidal war on Gaza launched by Israel on October 7 last year, with the support of the US and its other Western allies, completes 200 days on Tuesday, leaving behind a trail of death, destruction, displacement and starvation.

These 200 days – between October 7, 2023, and April 23, 2024 – have been marked by unprecedented crimes against the people of Gaza, especially children and women, the bombardment of hospitals and schools, abuse and torture of women and abduction of young boys.

Human rights groups and international bodies have described the harrowing events unfolding in the besieged Palestinian territory as a textbook case of genocide and ethnic cleansing.

Israeli regime’s key international allies – Washington, London, Paris and Berlin – have also been at the receiving end of massive public backlash for their continued military support for the regime.

The death toll in the apartheid regime’s genocidal campaign has already topped 34,150 since October 7, more than 75 percent of them being women and children, according to the Gaza government office.

The 2.3 million people in the besieged territory continue to deal with a catastrophic humanitarian crisis amid relentless bombings and crippling siege imposed by the Israeli regime with the backing of the US.

Following are the statistics related to 200 days of war waged by the Israeli occupation on Gaza. 

200 – the number of days of the latest Israeli genocidal war on Gaza

41,183 – the total number of those killed and missing in Gaza since Oct. 7

34,183 – the total number of fatalities in Gaza since Oct. 7 (confirmed dead)

7,000 – the number of people still under the rubble of destroyed buildings in Gaza (presumed dead)

77,183 – the number of wounded persons in Gaza since Oct. 7

3,025 – the number of massacres committed by the regime since Oct. 7

14,778 – the number of children killed since Oct. 7

30 – the number of children who died due to starvation and famine

9,752 – the number of women killed since Oct. 7

485 – the number of doctors and paramedics killed since Oct. 7

67 – the number of civil defense personnel killed since Oct. 7

140 – the number of Palestinian journalists killed since Oct. 7

72 – the percentage of children and women killed since Oct. 7

17,000 – the number of children who have lost one or both parents since Oct. 7

11,000 – the number of injured people who need to travel for treatment

10,000 – the number of cancer patients who face the risk of death

1,090,000 – the number of people with infectious diseases due to displacement

8,000 – the number of cases of viral hepatitis due to displacement

60,000 – the number of pregnant women at risk due to lack of healthcare

350,000 – the number of chronically ill patients suffering due to lack of medicine

5,000 – the number of people arbitrarily detained in Gaza since Oct. 7

310 – the number of health practitioners who have been arrested

20 – the number of known journalists arbitrarily detained since Oct. 7

2 million – the number of displaced people in the Gaza Strip

181 – the number of government buildings destroyed since Oct. 7

103 – the number of schools and universities completely destroyed since Oct. 7

317 – the number of schools and universities partially destroyed by the occupation

239 – the number of mosques completely destroyed since Oct. 7

317 – the number of mosques partially destroyed since Oct. 7

3 – the number of churches targeted and destroyed since Oct. 7

86,000 – the number of housing units completely destroyed since Oct. 7

294,000 – the number of housing units partially destroyed since Oct. 7

75,000 – tons of explosives dropped by the occupation on Gaza since Oct. 7

32 – the number of hospitals taken out of service by the occupation since Oct. 7

53 – the number of health centers that have become non-functional since Oct. 7

160 – the number of health institutions partially or fully destroyed since Oct. 7

126 – the number of ambulances destroyed by the occupation army since Oct. 7

206 – the number of archaeological and heritage sites destroyed since Oct. 7

$30 – billions in preliminary direct losses as a result of the genocidal war on Gaza

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News Network
April 25,2024

Bengaluru, Apr 25: Former union minister C M Ibrahim, who was expelled from Janata Dal (Secular) for protesting against party’s alliance with BJP, has stressed on need for a third front not just at the national level, but also in Karnataka. 

Addressing a news conference in Bengaluru on Wednesday, he said he’s planning to form a third front in Karnataka along with Lingayat Seer Dingaleshwar Swami.

Ibrahim said that he will tour the state between April 27 and May 4 and that he would meet Dingaleshwar Swami on April 29. “There is a need for the third front in this country. We will try to establish a third front in association with the seer and we hope we will be successful in those efforts,” he said.

Expressing disappointment with the Congress for not doing enough to gain the full confidence of Muslims, Ibrahim said that Congress is concentrating only on certain communities for votes, and ignoring Muslims. 

“The Congress is not even caring for Muslims and Dalit votes. In some Muslim areas they did not even hold campaigns seeking votes and trying to convince the communities which never vote in their favour. I fear this may lead to low turnout and Congress may lose its vote base,” he opined.

Mentioning about guarantees on which Congress is strongly relying during this election, Ibrahim said, such things won’t work all the time. “Guarantees will not work anymore. Every election you need to give something new to the voters,” he added.

On Prime Minister Narendra Modi’s statement that Congress is trying to appease minorities for votes, Ibrahim requested both Congress and BJP parties not bring Muslims between them. “I request both parties. Leave us alone. Don’t make us sandwiches for your political sake. We are living with peace and hope even the Prime Minister will understand this,” Ibrahim added.

Launching a broadside against Prime Minister Deve Gowda, Ibrahim said, “Deve Gowda has sold his personality itself. Whatever I have told about JD(S) has come true. I pity, a former Prime Minister should not have come to this stage,” he said. 

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