Gautam Adani stock rout continues as loan talks fail to ease worries

News Network
February 3, 2023

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Mumbai, Feb 3: The brutal stock rout in Gautam Adani’s companies continued Friday, an indication that the billionaire needs to do more to restore confidence in his conglomerate’s financial health after accusations of fraud by Hindenburg Research.

The group’s 10 stocks all fell in early Mumbai trading, with $120 billion, or more than half of their combined value, erased since the US-based short seller last week claimed that offshore shell entities were used to inflate Adani group’s revenues and manipulate stock prices. Flagship Adani Enterprises Ltd. sank as much as 25%, taking its decline to 66% in seven trading sessions.

The continued slump reflects worries about Adani’s access to funding after the tycoon scrapped a key stock offering this week, and as long-held concerns about the group’s debt load were propelled onto the global stage by Hindenburg. The embattled tycoon is in talks with creditors to prepay some loans backed by pledged shares, as some banks stopped accepting the securities of the group that spans from ports to energy as collateral in client trades.

“Clearing of pledges may not help. Now the only point is investors are not just interested in clearing pledges, they want concrete plans and actions,” said Sameer Kalra, founder of Target Investing in Mumbai. “The use of every rupee on balance sheet is critical now. There are a lot of stakeholders.”

The crisis of confidence in Adani has become a national issue with opposition lawmakers disrupting parliament on Thursday to demand answers from Prime Minister Narendra Modi’s government, given how closely his interests are intertwined with the nation’s growth plans. Government officials have sought to downplay the impact.

Hindenburg Research last week accused the Adani group of “brazen” market manipulation and accounting fraud, claiming that a web of Adani-family controlled offshore shell entities in tax havens were used to facilitate corruption, money laundering and taxpayer theft.

The conglomerate has repeatedly denied the allegations, called the report “bogus,” and threatened legal action. Adani gave a video speech on Thursday stating that the group’s balance sheet is healthy.

The conglomerate has repeatedly denied the allegations, called the report “bogus,” and threatened legal action. Adani gave a video speech on Thursday stating that the group’s balance sheet is healthy.

In a reprieve for Adani, who has seen his personal fortune drop by $58 billion since the allegations, the group’s bonds rallied Friday after Goldman Sachs Group Inc. and JPMorgan Chase & Co. told some clients that the debt can offer value due to the strength of certain assets. All 15 dollar debt securities advanced, partly helped by news that Adani Ports & Special Economic Zone Ltd. has made a coupon payment on schedule.

Meanwhile, banks have been tightening scruty on Adani companies’ securities. Units of Credit Suisse Group AG and Citigroup Inc. earlier this week stopped accepting some securities issued by Adani’s companies as collateral for margin loans to wealthy clients.

Separately, Lord Jo Johnson, the former Conservative minister and brother of former UK prime minister Boris Johnson, has resigned as a director of Elara Capital, a London-based firm embroiled in the controversy at the Adani empire, the Financial Times reported. The firm was one of the 10 bookrunners on the record share sale that Adani Enterprises abruptly abandoned earlier this week.

Adani’s proposed loan prepayment would see lenders release some of the stock in the group’s companies that was pledged as collateral, Bloomberg News reported, citing a person with knowledge of the matter. The Indian group hasn’t faced margin calls on these pledges and is seeking the prepayment proactively, the person added.

“Markets are looking for clarity on allegations and are likely not calmed via clearing of pledges,” said Nitin Chanduka, a strategist with Bloomberg Intelligence.

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News Network
May 14,2024

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Comedian Shyam Rangeela on Tuesday that he was barred from filing his nomination papers for the 2024 Lok Sabha Elections. He intended to challenge Prime Minister Narendra Modi from the Varanasi seat by contesting as an Independent candidate.

Despite attempts to file his papers since May 10, Rangeela alleged he was denied entry to the district magistrate's office on the day Prime Minister Modi filed his nomination. He also said that he is not taking any team from Sriganganagar to contest the Lok Sabha elections in Varanasi. 

Shyam Rangeela further claimed that he has received several phone calls from Varanasi and people are willing to join him. "Winning or losing is a different matter, but I will contest the elections against the Prime Minister at any cost. I am not contesting elections to become famous, I am already very famous among the public."

The Congress party also waded into the controversy. Congress leader Surendra Rajput told news agency PTI that everyone is free to file a nomination including Prime Minister Modi. Rajput claimed that Rangeela was not getting nomination papers from the administration. 

"Everyone is free to file a nomination including PM Modi. However, other people are not allowed to file their nominations from the constituency. A YouTuber named (Shyam) Rangeela, who wished to file a nomination from Varanasi, isn’t getting nomination papers from the administration. Why PM Modi is afraid of people? Let them contest against you," he said. 

PM Modi, contesting for a third term, previously won the Varanasi seat by 4.8 lakh votes in 2019 and by 3.72 lakh votes in 2014. So far, 14 individuals, including mainstream political party candidates and independents, have filed their nominations for the Varanasi constituency.

Congress candidate Ajai Rai and Bahujan Samajwadi Party's Athar Ali Lari are among them. Rangeela, a YouTuber and mimic from Rajasthan’s Hanumangarh, rose to fame in 2017 with his act impersonating PM Modi. He has been critical of the Prime Minister and his policies, as evident in his videos.
 

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News Network
May 17,2024

Forbes has released its ninth edition of the “30 Under 30 Asia” list, celebrating 300 young entrepreneurs, leaders, and trailblazers under 30 who are driving innovation and transforming industries across the Asia-Pacific region. 

Here's a list of Indians who made it to the Forbes list:

ENTERTAINMENT

Pavithra Chari
Pavithra Chari, a trained singer-composer, gained recognition as half of the duo Shadow and Light with Anindo Bose. Their collaboration with the Berklee Indian Ensemble earned a Grammy nomination in 2023. She is also part of the Anirudh Varma Collective, touring the US, and is skilled in Bharatnatyam dance. Ms Chari is also known for covering film hits.

Arpan Kumar Chandel (King)
Indian rapper Arpan Kumar Chandel, also known as King, became known worldwide when Nick Jonas remixed his hit song 'Maan Meri Jaan'. Mr King got famous on MTV Hustle in 2019 and has released many albums since. His latest, 'New Life', features artists like Nikhita Gandhi and Gucci Mane. He's also Sony Audio's ambassador and launched his fragrance, Blanko.

CONSUMER TECHNOLOGY

Kush Jain 
Kush Jain discovered the challenges faced by the visually impaired during a volunteering stint at a Bangalore school in 2018. Motivated to help, he co-founded ORama AI. Their innovative solution, a smart glove, helps the blind and those with reduced vision to learn Braille. The glove features an embedded camera and speaker, tracking finger movements and audibly identifying touched Braille dots.

Arth Chowdhary, Deyvant Bhardwaj and Oshi Kumari 
Arth Chowdhary, Deyvant Bhardwaj and Oshi Kumari co-founded InsideFPV, an Indian drone startup, in 2020. Their main product is an easy-to-use "plug-and-fly" drone, unlike others that require a complex setup. Based in Surat, the company also sells drones and parts online. 

Pranav Manpuria (Flux Auto)
Autonomous driving startup Flux Auto was co-founded by Pranav Manpuria in 2017. The company is working on creating self-driving software for forklifts and warehouse robots. They claim their technology can easily fit into existing systems of infrastructure.

Arun Sreyas and Gautham Maheswaran (RACE Energy)
In 2018, university friends Arun Sreyas and Gautham Maheswaran created RACE Energy. Headquartered in Hyderabad, the startup specialises in creating swappable battery packs tailored for the popular three-wheeled auto-rickshaws in India.

Harshit Jain and Abhik Saha 
Harshit Jain and Abhik Saha co-founded OnePlay, a cloud gaming startup in Mumbai in 2019. OnePlay allows users to play popular games like Baldur's Gate 3 and Palworld across multiple platforms without needing expensive hardware. 

ENTERPRISE TECHNOLOGY

Kunal Aggarwal
Kunal Aggarwal launched Credflow in 2019, offering cashflow management software for small and medium-sized enterprises. The platform analyses business data, sends automated payment reminders, and extends credit lines to eligible users. 

Gaurav Piyush, Mayank Varshney and Yash Sharma
Gaurav Piyush, Mayank Varshney and Yash Sharma came together to establish Blitz, a logistics startup, in 2020. Based in Gurugram, the company, formerly known as Grow Simplee, specialises in offering same- or next-day delivery services by using a network of warehouses and fulfilment centres.

Aditya Dadia
Aditya Dadia founded AIwrite in 2022, providing new digital software for India's insurance sector. Based in Mumbai, the startup uses machine learning to help insurance companies analyze risks and develop products faster. 

FINANCE AND VENTURE CAPITAL

Aalesh Avlani (CWC)
Aalesh Avlani, a Boston University graduate, co-founded Credit Wise Capital (CWC), a finance company specialising in providing loans for motorcycles. Founded in 2019, CWC received $6 million in startup funding the following year. They use technology like a WhatsApp bot to quickly assess creditworthiness, making it easier for people with no credit history to apply for loans.  

Srinivas Sarkar and Kushagra Manglik (Coupl)
Srinivas Sarkar and Kushagra Manglik co-founded Coupl, India's bank designed for couples of all types. Launched in early 2022, the startup helps couples, irrespective of marital status or sexual orientation, effectively manage their finances with joint accounts and linked ATM cards.

Aniket Damle
Aniket Damle works with Blackstone's private equity investment team in Asia, focusing on investments in India's healthcare, consumer, and industrial sectors. At just 23 years old, he made his first deal when Blackstone collaborated with Sona BLW to establish Sona Comstar, a technology platform company focused on electric vehicles, in 2018.

Yashvardhan Kanoi (Alter Global)
Yashvardhan Kanoi heads investments at Alter Global, a venture capital firm linking Silicon Valley with startups in emerging markets. Since 2019, he led investments in companies across Southeast Asia, South Asia, and Latin America like Ula, BukuKas, and CoLearn.

Manish Maryada (Fello)
Manish Maryada co-founded Fello, a fintech startup based in India. Fello offers rewards to users to make investing enjoyable. When users invest a certain amount through the app, they receive a ticket to play in-house games and win rewards and prizes. Founded in 2021, Fello has been downloaded over a million times and has raised over $5 million in funding.

Anuj Srivastava and Priyesh Srivastava (OnFinance AI)
Anuj Srivastava and Priyesh Srivastava (not related) co-founded OnFinance AI, a Bengaluru-based startup. They developed NeoGPT, a ChatGPT-like service tailored for the finance industry, which helps analyse data, generate forecasts, and conduct financial market research.

HEALTHCARE AND SCIENCE

Karan Ahuja
Google research scientist Karan Ahuja will become an assistant professor of computer science at Northwestern University starting in September 2024. With a PhD in human-computer interaction from Carnegie Mellon University, Mr Ahuja has focused on projects like body-movement sensing for smartwatches and gaze-tracking for smartphone control. His work has earned nearly 1,000 citations over the past five years. 

Aryan Chauhan
Aryan Chauhan, along with his mother Monika Chauhan, co-founded Zivov in 2021 with the aim of helping with diabetes treatment. Their solution involves a self-developed sensor that attaches to the skin to monitor blood sugar levels. Users can access the results through Zivov's smartphone app.

INDUSTRY, MANUFACTURING AND ENERGY

Akshit Bansal and Raghav Arora (Statiq)
Akshit Bansal, CEO of Statiq, got the idea for greener transportation while biking through Bengaluru's polluted streets. After a failed car-sharing venture with his friend Raghav Arora, they shifted their focus to electric vehicles. Their Gurgaon-based company, Statiq, now operates a nationwide network of charging stations for electric cars, buses, trucks, and three-wheelers. The company has raised $27.5 million from investors and expects to post its first operating profit in the next financial year.

Ankit Jain and Narayan Lal Gurjar (EF Polymer)
Ankit Jain and Narayan Lal Gurjar co-founded the agriculture startup EF Polymer in 2018. Their company has created a powder-like water-retention product made from biodegradable materials like bananas and orange peels. This product helps retain moisture in the soil and enhance crop yields by absorbing excess water and gradually releasing it.

Chirag Jain and Rama Krishna Mendu (EndureAir Systems)
Chirag Jain and Rama Krishna Mendu founded EndureAir Systems, a drone startup, in 2018. The Noida-based company has created three drone models for mapping, monitoring, and logistics. One of them is battery-powered and can carry up to 15 kg while travelling 15 km.  

Rahil Gupta (Hop Electric Mobility)
Rahil Gupta co-founded Hop Electric Mobility, an electric motorbike startup, in 2020. The company offers three products priced between ₹66,790 and ₹1,33,580. Their premium Oxo bike, for instance, can reach speeds of up to 95 km per hour and cover 150 km on a single charge

MEDIA, MARKETING AND ADVERTISING

Kavan Antani

Kavan Antani is one of the co-founders of IndieFolio, a Mumbai-based on-demand talent marketplace catering to creative professionals. Launched in 2014, the platform serves as a connection hub for designers, animators, content creators, and video producers with clients seeking talent. IndieFolio boasts a talent pool of over 70,000 individuals and counts major clients like Paytm, Ogilvy, and Domino's Pizza.

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News Network
May 17,2024

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Hamas says the Israeli regime’s bombing of the Gaza Strip, which is enduring a genocidal Israeli war, has killed 70 percent of the Zionist captives, who have been held by the Palestinian resistance movement since an October operation.

Khalil al-Hayya, deputy chief of Hamas’ Political Bureau, announced the information in an interview with Lebanon’s al-Manar television network on Thursday.

“The Zionist enemy wants to recover the remaining captives by force, killing them by bombing,” he said.

Around 250 people were taken captive on October 7 last year during Al-Aqsa Storm, a retaliatory operation by Gaza’s resistance groups.

At least 35,272 Palestinians have died in an Israeli war of genocide that began following the operation.

Hamas released 105 of the captives during a week-long truce in late November.

Hamas recently agreed to another truce proposal enabling cessation of the Israeli aggression and release of the rest of the captives. The Israeli regime, however, rejected the proposal.

The Hamas’ official said, “The latest proposal presented to us comes very close to our demands, but the enemy has not respected the proposal or the mediators.”

Al-Hayya reiterated the movement’s demands, saying any potential truce agreement had to mandate a complete and comprehensive cessation of the Israeli aggression, withdrawal of all Israeli forces from Gaza, and then a captive exchange deal.

‘Victory is our ally’

The Hamas’ official pointed to the Israeli regime’s failure to realize its war goals, including defeating the resistance.

“After eight months of aggression, the enemy has failed to eradicate the resistance in Gaza despite all the actions of the occupation,” he said.

“The resistance has rebuilt itself and can adapt its capabilities to face the occupation,” the official said, asserting, “The resistance is capable of enduring for many months and will continue to defend its people as long as the battle is ongoing.”

“The resistance has the ability to continue because it is right, and victory is our ally, while the enemy will face defeat.”

Thanking regional resistance

Elsewhere in his remarks, al-Hayya expressed gratitude towards the regional resistance groups for the pro-Palestinian operations that they have been carrying out against Israeli targets and those associated with the occupying regime.

“The fronts in Yemen, Lebanon, and Iraq support Gaza and link the cessation of [their] operations to the end of aggression on Gaza,” he said.

“When we meet with the resistance forces in the region, we affirm that the battle is one.”

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