BENGALURU- The sell-off in India’s Adani Group’s seven listed companies, where more than $110 billion in market value has already evaporated, continued on Monday as a US short-seller’s report critical of the group’s finances now led to credit warnings.
Ratings agency Moody’s warned on Friday that the group may struggle to raise capital and S&P cut its outlook on two group companies, the latest fallout of Hindenburg Research’s Jan. 24 report that questioned the conglomerate’s debt levels and use of tax havens.
Shares of Adani Enterprises Ltd sank 9.6 percent on Monday, taking the group’s flagship company’s losses to nearly $28 billion since the report.
Adani Transmission Ltd dropped 10 percent, while Adani Green Energy Ltd, Adani Total Gas Ltd, Adani Power, and Adani Wilmar fell roughly 5 percent.
Adani Ports and Special Economic Zone was the only stock in green, with a 1.2 percent rise.
India’s market regulator moved to calm investor concerns on Saturday, saying that its financial markets remain stable and continue to function in a transparent and efficient manner, despite recent dramatic stock falls in Adani Group companies.
India’s market regulator has written to custodian banks to share details of beneficial owners of offshore funds and foreign portfolio investors, according to two sources directly aware of the matter.
The regulator has asked custodian banks to reach out to foreign portfolio investors by March and share the details by end of September, the sources said, speaking on condition of anonymity as the matter is confidential.
If they do not provide such details, the regulator would deem the foreign funds in-eligible and ask them to liquidate their holdings in the Indian market by March 2024.
There are 11,000 foreign funds registered with the Securities and Exchange Board of India (SEBI). An email sent to SEBI was not immediately answered.
Meanwhile, Indonesian President Joko Widodo urged on Monday his country’s financial regulator to strengthen supervision on capital markets in the wake of the crisis at India’s Adani Group.
Speaking in an annual financial services authority meeting, Widodo pointed to the depreciation of the rupee and capital outflows from India after the meltdown in stock market values of Adani Group companies. – Reuters
