India’s second largest company has lost half of its market value, more than one hundred billion euros, in just over a week.
The difficulties of the Indian conglomerate Adani have continued today, Friday. Adani Group is the second largest corporate group in India.
Today, the stock exchange price of Adani Enterprises, the flagship of the corporate group, plunged as much as 35 percent, but rose as the trading day progressed and ended up 1.4 percent higher than yesterday’s value. When the course was at its lowest, the company had lost 70 percent of its value in about a week, i.e. more than 30 billion euros.
The credit rating agency Moody’s warned that the decline in the stock market price of Adani companies could lead to difficulties in raising new capital. However, another credit rating agency, Fitch, did not see this kind of threat.
In any case, Adani Enterprises has been dropped from the lists of some of the most stable listed companies, so the most cautious investors have stopped financing the company. In India, there has been a fear that investors’ uncertainty would spread to the wider economy.
An expert from the Singaporean Saxo Markets analytics company interviewed by the Reuters news agency As Charu Chana estimates that concern about expansion is growing, but it is limited to the banking sector.
Finance Minister of India Nirmala Sitharaman convince of Hindustan Times (you will switch to another service) in the interview, that the country’s economic life is carefully managed and well managed. The risks are within calculated limits, he says.
The French energy giant Total Energies is worried about the situation of the Adani companies, says Financial Times magazine (you will switch to another service). Total has invested 3.1 billion euros in Adani’s group of companies. A careful preliminary assessment of the investments was made, the company says.
However, Total Energies says that it is happy that Adani plans to commission an investigation into its own financial situation.
Adani’s problems began when the investment research company Hindenburg Research published a report, according to which there were ambiguities in Adani’s operations, including the falsification of stock prices. Adani has vehemently denied the accusations.
Sources: Reuters, AP