Adani's market losses top $100bn as shelved share sale spooks investors
Adani late on Wednesday (1) called off the share sale as a stocks rout sparked by short-seller Hindenburg’s criticisms intensified, despite the offer being fully subscribed on Tuesday (31).
Pramod Thomas is a senior correspondent with Asian Media Group since 2020, bringing 19 years of journalism experience across business, politics, sports, communities, and international relations. His career spans both traditional and digital media platforms, with eight years specifically focused on digital journalism. This blend of experience positions him well to navigate the evolving media landscape and deliver content across various formats. He has worked with national and international media organisations, giving him a broad perspective on global news trends and reporting standards.
India's Adani group shares sank on Thursday (2) after it abandoned its flagship company's $2.5 billion stock offering, swelling the conglomerate's market losses to more than $100bn and sparking worries about the potential systemic impact.
The withdrawal of Adani Enterprises' share sale caps a dramatic setback for Gautam Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years but dwindled over the past one week after a US-based short-seller published a critical research report.
The events are an embarrassing turn for Adani who has forged partnerships with foreign giants such as France's Total Energies and investors such as Abu Dhabi's International Holding Company as he pursues a global expansion of businesses that stretch from ports and mining to cement and power.
Adani late on Wednesday (1) called off the share sale as a stocks rout sparked by short-seller Hindenburg's criticisms intensified, despite the offer being fully subscribed on Tuesday.
Adani Enterprises plunged nearly 20 per cent on Thursday, trading at its lowest since March 2022. Other group companies were also under pressure - Adani Ports and Special Economic Zone was down 5 per cent, while Adani Total Gas, Adani Green Energy and Adani Transmission lost 10 per cent each.
Since Hindenburg's report was released on Jan. 24, group companies have lost nearly half their combined market value. Adani Enterprises - described as an incubator of Adani's businesses - alone has lost $24bn in market capitalisation.
Adani, 60, is also no longer Asia's richest person, having slid in the rankings of the world's wealthiest to 16th, as per Forbes' list, from third last week.
"Unless Adani is able to regain the confidence of institutional investors, stocks will be in freefall," said Avinash Gorakshakar, head of research at Mumbai-based Profitmart Securities.
Adani's plummeting stocks have raised concerns about the likelihood of a wider impact on India's financial system.
India's central bank has asked local banks for details of their exposure to the Adani group of companies, government and banking sources said on Thursday. CLSA estimates that Indian banks were exposed to about 40 per cent of the Rs 2 trillion ($24.53bn) of Adani group's debt in the fiscal year to March 2022.
Citigroup's wealth unit has stopped extending margin loans to its clients against securities of Adani group and decided to cut the loan-to-value ratio for credit against Adani securities to zero on Thursday, said a source.
"We see the market is losing confidence on how to gauge where the bottom can be and although there will be short-covering rebounds, we expect more fundamental downside risks given more private banks (are) likely to cut or reduce margin," Monica Hsiao, Chief Investment Officer of Hong Kong-based credit fund Triada Capital, said.
In New Delhi, opposition lawmakers submitted notices in the Indian parliament, demanding discussion on the US short-seller's report. The Congress party demanded setting up a Joint Parliamentary Committee or a Supreme Court monitored investigation into the matter.
'Improper use of offshore tax havens'
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.
Earlier this week, the Adani group said it had the complete support of investors, but investor confidence has tapered in recent days.
As shares plunged after the Hindenburg report publication, 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.
Maybank Securities and Abu Dhabi Investment Authority, as well as India's Life Insurance Corporation, had bid for the anchor portion of the issue. Those investments will now be returned by Adani.
In a late night announcement on Wednesday, the billionaire 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."
Early on Thursday, Adani said in a video address the "interest of my investors is paramount and everything is secondary. Hence, to insulate the investors from potential losses we have withdrawn" the share sale.
A PUBLIC inquiry begins on Tuesday into the murders of three young girls at a Taylor Swift-themed dance event in Southport last year.
The inquiry will examine whether the attack could have been prevented and how future incidents might be avoided.
The attack took place during a summer holiday event in northern England in July, when teenager Axel Rudakubana, who had a history of violence and an interest in genocide, carried out a knife attack. Three girls were killed and 10 others injured.
The incident led to widespread shock and was followed by several days of rioting across the country.
Rudakubana, who was 17 at the time, was sentenced in January to a minimum of 52 years in prison. He pleaded guilty just before his trial was due to begin. Prosecutors said there was no clear motive, describing the attack as driven by a desire to commit mass murder.
Following his conviction, prime minister Keir Starmer ordered an inquiry after it emerged during the trial that Rudakubana had been referred to a counter-radicalisation programme three times, but no further action had been taken.
He had also been previously arrested while carrying a knife and had admitted to possessing an al Qaeda training manual as well as making the poison ricin.
Adrian Fulford, who is leading the inquiry, said in a statement: "My focus throughout this inquiry will be a thorough and forensic investigation of all the circumstances surrounding the attack and the events leading up to it."
The first part of the inquiry will examine Rudakubana’s background and his contact with public bodies. A second phase will explore the wider issue of children becoming involved in violence, which has become an increasing concern for UK authorities.
Lawyers representing the families of the three girls – Bebe King, six, Elsie Dot Stancombe, seven, and Alice Dasilva Aguiar, nine – said they hoped the inquiry would help bring out the facts.
"We know that nothing the inquiry reveals, or subsequently recommends will change the unimaginable loss felt by the families of Elsie, Alice and Bebe, but we all now have a responsibility to ensure that something like this never happens again," they said in a statement.
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Garavi Gujarat
Publications Ltd and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.
Starmer is facing a Labour backbench revolt over plans to reform special needs support in schools without guaranteeing existing legal rights. (Photo: Getty Images)
KEIR STARMER is facing a backlash from Labour MPs over plans to reform special educational needs and disabilities (SEND) support, after ministers stopped short of guaranteeing legal rights for parents.
Education Secretary Bridget Phillipson said the government was committed to reforming the current system, which costs £12 billion a year. However, she did not confirm if legally enforceable rights, such as those provided by education, health and care plans (EHCPs), would remain.
Early education minister Stephen Morgan told Times Radio: “We want to make sure that every child gets the support that they need,” but did not rule out changes to current entitlements.
Senior Labour MPs told The Times the plans risk repeating mistakes from past welfare reforms. “We’re all in favour of reforming the system but that cannot be driven by saving money and taking support away from children,” one MP said.
The government’s proposals, expected in the autumn, focus on early intervention and better support in mainstream schools. Ministers say the aim is not to cut costs but to improve outcomes. They have pledged £750 million for new specialist facilities and over £1 billion for high needs budgets.
Campaigners say EHCPs remain essential for securing support. Celebrities and groups including the National Autistic Society warned in The Guardian: “Without statutory support, underpinned by necessary extra resources for schools, it’s extremely unlikely that ministers will achieve their aim.”
Phillipson told the BBC the current system was “too adversarial” and “too bureaucratic,” adding: “We need to just take a step back and think about how do we build a better system.”
Keep ReadingShow less
Londoners faced a wet and stormy start to the week
Heavy rain and thunderstorms drench London at the start of the week
Temperatures set to rise with highs of 31°C expected by Thursday
Heatwave could be declared by Friday if warm conditions persist
Night-time temperatures to remain high, increasing discomfort
UV and pollen levels forecast to be very high across the south
Thunderstorms soak London before summer heat returns
Londoners faced a wet and stormy start to the week as heavy rain and overnight thunderstorms swept through the capital. Monday morning saw widespread downpours, leaving commuters reaching for umbrellas and Wimbledon ticket hopefuls queuing in ponchos.
The unsettled conditions followed a burst of thunderstorms on Sunday afternoon and continued into the early hours of Monday, prompting caution across the city. The Met Office has not issued a formal weather warning for thunderstorms, but conditions remain unstable.
Temperatures expected to climb through the week
According to the Met Office, Monday will gradually clear, with sunny intervals forecast later in the day. Temperatures are expected to peak at around 23°C, before rising steadily through the week.
By Wednesday, temperatures could reach between 25°C and 28°C in parts of the country. However, for a heatwave to be officially declared, these thresholds must be met for three consecutive days.
Senior Met Office meteorologist Marco Petagna explained: “Although the temperature will be reaching the criteria, we probably won’t actually reach an official heatwave until around Friday.”
— (@)
Heatwave likely by Friday, with weekend highs in low 30s
The mercury is forecast to hit 30°C or above by Friday and Saturday, with some areas potentially reaching the low 30s. Conditions are also expected to become more humid towards the weekend, making nights increasingly uncomfortable as temperatures are not likely to fall below 15°C.
Petagna noted that while it will be hot, the UK is expected to avoid the extreme heat experienced in southern Europe, where parts of Spain and Portugal have seen temperatures soar into the mid-40s.
UV and pollen levels also rising
In addition to the heat, very high UV and pollen levels are expected across southern parts of the UK later in the week. The Met Office has advised the public to take precautions during peak hours of sunlight.
The long-term outlook remains uncertain, with some forecasts suggesting the heat may ease early next week, while others predict it could persist into the following weekend.
Keep ReadingShow less
Lisa Nandy, Steve Reed, René Olivieri and Hilary McGrady at a National Trust event marking its 130th anniversary
THE National Trust, which is seeking to broaden its appeal to British Asians, is marking its 130th anniversary with a renewed commitment to restoring nature and widening access under a 10-year strategy.
Its director-general, Hilary McGrady, also aims to inspire more people to get involved in caring for the country’s natural resources.
The National Trust was founded in 1895 by three Victorian philanthropists – Octavia Hill, Sir Robert Hunter and Canon Hardwicke Rawnsley – to “promote the permanent preservation for the benefit of the nation of lands and tenements (including buildings) of beauty or historic interest”. With more than “5.38 million members, 11,000 staff and 61,000 volunteers, it is now Europe’s largest conservation charity, caring for over 250,000 hectares of farmland, 890 miles of coastline and 500 historic properties, gardens and nature reserves, for everyone, for ever”.
It wants more British Asians to apply for jobs with the Trust or offer to become volunteers. Many of its historic properties have Indian connections.
McGrady, who has been with the Trust for 20 years, set out the organisation’s aims: “For 130 years, the National Trust has responded to the crises and challenges of the time. Today, nature is declining before our eyes and climate change is threatening homes and habitats on a colossal scale. Meanwhile, millions of people can’t enjoy the benefits that green space and heritage bring.
“So, we will ramp up our work to restore nature, both on our own land and beyond our boundaries. We’ll work to end inequality of access to green space and cultural heritage. And we will inspire millions more people to take action to protect the things we all need to thrive.
“Our charity’s founders were passionate campaigners who recognised the threats to our natural and cultural heritage, and, against the odds, did something about it. That same boldness is needed today. The Trust is uniquely placed to do something about these challenges and it’s why we are setting ourselves these ambitious but much-needed goals.”
At a recent reception to mark the Trust’s 130th birthday in College Gardens, Westminster, the director general asked guests to close their eyes and imagine their favourite idyllic locations.
“You need to know the National Trust is here to look after it, to support it, to stand up for it, to stand up for the right for everyone to have the kind of access to the beauty and the nature that you’ve been thinking about,” McGrady said.
She was “incredibly proud” of what the Trust had achieved “from the very days where there was just a glint in Octavia’s eyes. But I also want you to think about the legacy – not just what we’ve achieved so far, but the legacy we want to leave for our future, for your children, your children’s children, and far beyond,” she added.
She pointed out: “Our historic fabric in our towns and our cities is under massive threat, because we’ve no money to be able to upkeep them. Local authorities are under real pressure. People living in cities – 40 per cent of them – have no access to green or blue space, and so that connectedness that is so vital for the care of nature is being broken.
“And, of course, climate change is affecting everybody’s life – and anyone who doesn’t think it, please just look at the flooding, look at the heat damage, look at our landscapes. These are new challenges, and the Trust is going to step up and face them again.
” She declared: “We’re going to restore nature. We’re not just going to stop the decline. We’re going to restore it.”
McGrady said: “We’re going to move more and more into cities.” “We’ve just done that at Castlefield,” she added, referring to the transformation of a Victorianera steel viaduct transformed into a green “sky garden” in the heart of Manchester.
She also spoke about a landscape project in Belfast: “We’ve just acquired an amazing bit of divis on the edge of Belfast that will make a massive difference to the north of the city.”
She paid tribute to the people who had built the organisation over 130 years: “I stand on the shoulders of many, many of those giants, and they’re the people who built an institution that is much loved, that is much respected and is really trusted, which in this day and age, is a rare and a precious thing I will fight to protect to the death.
” She concluded: “I hope that Octavia – if she’s looking down on us now – will be pleased to see the spirit of the National Trust remains and that we remain for everyone, forever.”
McGrady was followed by Steve Reed, secretary of state for the environment, food and rural affairs, who waved his National Trust membership card: “We all have a special place we love to visit. For me, it’s Sissinghurst Castle in Kent. I love the beautiful gardens designed by the writer and poet Vita Sackville-West and her husband Harold Nicolson, which remain popular today.”
He expressed the Labour government’s support for the Trust: “I look forward to working with the National Trust to develop this work and open up more of our beautiful countryside for everyone to enjoy.”
He said: “Nature underpins everything: our economy, our communities and our livelihoods. But we have become one of the most nature-depleted countries in the world. Restoring nature is a key pillar of the government’s plan for change.
“I’ve just arrived back this afternoon from the UN Oceans Conference in Nice. I was proud to announce a consultation on banning bottom-trawling in our marine protected areas. We can’t go on wiping out precious marine habitats, just because they’re out of sight beneath the sea.
“And yesterday, my colleague Matthew Pennycook announced that the government will update national planning policy to ensure swift bricks are incorporated into new buildings. They make a massive impact on expanding bird populations. We will make sure that now happens in new developments right across the country.
“We will create nine new national river walks, plant three new national forests and support communities to create new parks and green spaces in their neighbourhoods. We’ve already announced the first new national forest between the Cotswolds and the Mendips which will see 20 million trees planted in the coming years.
“It’s a national scandal that our rivers, lakes and seas are choked by record levels of pollution. We’re cleaning them up with new laws to ban bonuses for water bosses who oversee catastrophic pollution incidents, and bringing in over £100 billion of private funding to fix the broken pipes that are the primary cause of sewage leaks.”
The culture secretary, Lisa Nandy, also spoke in support of the Trust, in contrast to some of her predecessors under the Tories who had criticised a report revealing that nearly a hundred of its historic properties were built with money made in India or through the slave trade.
Nandy said she had visited Trust properties with her parents and now, with her 10-year-old son, had been to “hundreds of National Trust properties all over the country”. “What we’ve seen is an organisation that is truly national in the sense that you are rooted locally, standing with communities not just to protect and preserve, but to promote and celebrate the pride, heritage and contribution of those places and their people to our country.”
The volunteers were warmly thanked by the Trust’s chairman, René Olivieri.
Keep ReadingShow less
The King said the public should draw on the 'extraordinary courage and compassion' shown in response to the attacks. (Photo credit: X/@RoyalFamily)
PRIME MINISTER Keir Starmer and King Charles on Monday paid tribute to the unity shown in the aftermath of the 7 July bombings in London, as the country marked 20 years since the attacks.
On 7 July 2005, four Islamist extremists carried out suicide bombings at Aldgate Station, Edgware Road, King's Cross and Tavistock Square. The attacks killed 52 people and injured hundreds more.
Events are being held across London to commemorate the anniversary. Members of the royal family are expected to join survivors and families of the victims.
The King said the public should draw on the "extraordinary courage and compassion" shown in response to the attacks.
"We remember with profound sadness the 52 innocent people who were killed in senseless acts of evil -- and the enduring grief of their loved ones," he said in a statement published by the Press Association.
"In doing so, we should also remember the countless stories of extraordinary courage and compassion that emerged from the darkness of that day.
"The selfless bravery of our emergency services, transport workers, and fellow citizens who rushed towards danger to help strangers reminds us of the very best of humanity in the face of the very worst."
‘We stood together then, and we stand together now’
Starmer said, "Those who tried to divide us failed."
"We stood together then, and we stand together now -- against hate and for the values that define us of freedom, democracy and the rule of law."
He added, "We honour the courage shown that day -- the bravery of the emergency services, the strength of survivors, and the unity of Londoners in the face of terror."
The Duke and Duchess of Edinburgh will attend a National Service of Commemoration at St Paul’s Cathedral. A separate service will also take place at the memorial in Hyde Park for survivors and families of the victims.
Call for unity and vigilance
Charles said, "While the horrors will never be forgotten", the country "may take comfort from the way such events rally communities together".
"It is this spirit of unity that has helped London, and our nation, to heal," he said.
"Let us therefore use this 20th anniversary to reaffirm our commitment to building a society where people of all faiths and backgrounds can live together with mutual respect and understanding."
Home secretary Yvette Cooper, speaking ahead of the anniversary, said Islamist and right-wing extremism remained the most significant threats to the UK.