retracted aAdani Enterprises stock, By 10% at the beginning of trading today, Thursday, following the Indian company announced the cancellation of the secondary public offering of its shares at a value of $ 2.5 billion, in order to protect investors from fluctuations in the group’s shares.
The decision to withdraw the stock offering represents a major setback for “Adani”, which pushed the group’s dollar bonds to levels close to default with the escalation of concerns regarding the risks of its debt, noting that the “Adani” group has $ 34.7 million in coupon payments due this week on these dollar bonds. .
The sharp declines in the shares of the group’s subsidiaries have erased $104 billion from the market value since the issuance of the scathing report from “Hindenburg Research”, which accused the Indian group of improper use of offshore tax havens and raised concerns regarding its high debt and the corresponding long response from founder Gautam Adani. , on the allegations of the American company, which he accused of fraud.
In addition, the Indian Central Bank asked local banks to provide details regarding their exposure to Adani Group companies, according to sources told Archyde.com.
It is estimated that the exposure of Indian banks to the group represents 40% of the group’s debts for the fiscal year ending in March 2022, amounting to $24.5 billion.
In this context, sources indicated that the wealth management arm of both the “Citigroup” and “CREDIT SUISSE” bank had stopped accepting the securities of the Gautam Adani Group of Companies as collateral for margin loans, as banks are intensifying scrutiny of the financial affairs of the Indian businessman in the wake of allegations of fraud by Hindenburg Research Company The short seller.