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
March 18,2023

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New Delhi, Mar 18: Food supply in India and across the globe will go down by at least 6 per cent by 2050 as water crisis and heat stress caused by climate change will hit productivity, the Global Commission on Economics of Water (GCEW) has warned.

The commission is convened by the Government of the Netherlands and facilitated by the Organisation for Economic Co-operation and Development (OECD). Its latest report used a large dimensional computable general equilibrium model to project impacts on global irrigated food production and food security.

Food supply decreases were projected for two climate change scenarios or representative concentration pathways (RCP) based on the intensity of the greenhouse gas emissions. The optimistic RCP 4.5 based on drastic cut in emissions and RCP 8.5 the worst-case scenario. The model used 2014 as base year.

"Even under the best-case climate change scenario of RCP4.5, most African countries experience an increase in people with severe food insecurity by more than one third," the report 'The What, Why and How of the World Water Crisis' said.

The "best case" scenario for India meant a 6.52 per cent fall in food supply while it was 16.1 per cent in the worst case scenario. In China, it was 8.97 per cent and 22.4 per cent, respectively while the fall in the US was pegged at 4.8 per cent and 12.6 per cent.

Food insecurity affects 72-81 crore people globally and is linked to water insecurity. The fall in production, the study said, will push 100 crore people into severe food insecurity, the report said.

In another report titled 'Turning the Tide', the GCEW issued a seven-point agenda for collective action: managing global water cycle with just and equity, adopt outcomes-focussed approach to water conservation, cease underpricing water, phase out subsidies in agriculture and water, establishing just water partnerships, fortifying freshwater storage systems and reshape the multilateral governance of water. 

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News Network
March 12,2023

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Mangaluru, May 12: The Air India Express (AIE) has reduced the frequency of flights between Kuwait and Mangaluru in its summer schedule much to the disappointment of the tens of thousands of expatriates from the coastal belt of Karnataka working in the oil rich gulf nation.

The AIE used to operate thrice a week between Kuwait and Mangaluru. In January, 2023, the frequency was reduced two days a week. However, the summer schedule shows that it will operate only one flight a week, which will be every Sunday.

According to estimates, there are no less than fifty thousand non-resident Indians from two coastal districts of Dakshina Kannada and Udupi working in Kuwait.  Data from the Directorate General of Civil Aviation shows that on an average every year close to 20,000 passengers fly between Mangaluru and Kuwait sector.

Thanks to the reduction in frequency of direct flight service, a large number of expatriates from Mangaluru region now have reach home after flying to Mumbai, Bengaluru, Kannur or Goa airport. This has also resulted in additional travel time and extra expense for many.

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News Network
March 9,2023

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Mangaluru, Mar 9: Dr. Preethi Lolaksha Nagaveni, a Legal Scholar from Mangaluru, has once again delivered a joint oral statement before the United Nations Committee on the Rights of Persons with Disabilities on 7th March 2023 along with Dr. Amit Anand. 

The Oral statement was delivered under the topic, “Impacts and Challenges faced by persons with disabilities in situations of risk and the role of State and Non-State actors in addressing them”.

Dr. Preethi has earlier presented three joint oral statements before various UN committees.

Dr Preethi in WHO Database

Recently World Health Organization [WHO] has included her Book Chapter in its official “WHO COVID-19 Research Database”. The book titled ‘COVID-19 IN ASIA -LAW AND POLICY CONTEXTS, published by Oxford University Press, New York in which Dr. Preethi along with Prof Susan Breau, Dean of faculty of Law, University Victoria, Canada has written a chapter on “International Health Regulations and Compliance in Asia”.

The authors have critically examined the limitations of the International Health Regulations due to which the WHO was in crisis in managing the COVID -19 pandemic and recommended appropriate amendments to the said Regulations. 

Work cited by the UN Committee

Dr Preethi, along with Dr. Amit Anand, had submitted inputs to the United Nations Committee on Child Rights as part of Day of General Discussion on “Children’s Rights and Alternative Care” which was held on 16th and 17th September 2021, during the 88th Session of the Committee at the United Nations Office in Geneva. In their report, the young scholars have suggested ‘The Measures to Prevent Sexual Abuse of Children in Residential Care Homes in India’. Taking cognizance of the importance of the report submitted by the young scholars, the United Nations Committee on Child Rights has not only published it in the official website of the Office of the United Nations High Commissioner for Human Rights (OHCHR) but also cited their report in its Background Document on “Children’s Rights and Alternative Care – September2021”.

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