Protesters from the opposition Congress party. Have demanded an investigation into allegations of fraud. And stock price manipulation by India’s second-largest business group.
NEW DELHI – Hundreds of protesters from. India’s main opposition party marched in the Indian capital. New Delhi and other cities on Monday to demand an investigation. Into allegations of fraud and stock price manipulation. By India’s second-largest business group, led by coal mining tycoon Gautam Adani. . .
Adani Group said on Monday that its major investors, known as “promoters” in India. Have pledged to prepay $1.1 billion in equity-backed debt to be repaid by September 2024. The payout includes Adani’s ports business, Adani Green Energy and Adani shares. infection.
Shares of Adani Ports and Special Economic Zone jumped 9% after the announcement.
Members of the opposition Congress. Party are urging Prime Minister Narendra Modi to order a probe. Into the Adani group of companies after US-based short-selling firm. Hindenburg Research, accused them of various fraudulent practices. The Adani group has denied any wrongdoing.
In New Delhi, Congress party workers threw fake notes in the air and chanted slogans. Some burnt a suitcase plastered with pictures of Modi and Adani. Some protesters raised police barricades and were detained and taken to police vans.
In the financial capital, Mumbai, and the southern city of Chennai. Opposition activists gathered outside the offices. Of a state-run bank and the country’s largest insurance company. Which are known to have investments in Adani shares.
So far, there are no signs of the fracas spreading across India’s financial sector. And the protests are a reflection of political theater rather. Than spontaneous public anger. Lawmakers disrupted Parliament for a third day. On Monday as India’s market regulator called for a probe into Hindenburg’s claims.
Adani and his companies lost billions of dollars as investors dumped their shares. Last week, the Adani Group canceled a $2.5 billion share offer, promising to return investors. The billionaire’s fortune has grown by more than 2,000% in recent years. Critics say she has benefited from a strong relationship. with Modi and his government, while others point. Out that she thrived under the previous administration as well.
“What steps have been taken to investigate the serious. Allegations leveled against the Adani Group over the years?” Congress Party General Secretary Jairam Ramesh. Said in a statement issued over the weekend. “Is there any hope of a fair and impartial investigation under you?” He said about Modi.
Shares in the group’s flagship Adani Enterprises were shaky on Monday and were down 2.1% by midday on Monday. Its market value has shrunk by more than 50% since the Hindenburg Report. The stocks of five other Adani-listed companies fell 5% to 10%. Adani’s move to pay off share-backed. Debt addressed one of the key concerns raised by Hindenburg. Heavy borrowing using group shares as collateral. Adani said in a written statement that the repayment commitment by major. Shareholders “is in continuation of the promoter’s assurance for prepayment. Of all share-backed financing.”
Wild swings in share prices have highlighted concerns about corporate governance. Especially as the country tries to attract foreign investors. On Saturday, the Securities and Exchange Board of India (SEBI). issued a rare statement to reassure investors.
“Over the past week, unusual price movements. have been observed in the stocks of a trading conglomerate.” India’s markets regulator Adani Group said, without naming names. It said there are measures in place to deal with volatility in certain stocks. The regulator said it would examine any information before taking “appropriate action”.
Finance Minister Nirmala Sitharaman on Friday dismissed. Concerns that the controversy would alarm global investors. Saying India’s financial markets were “very well regulated.”
The Hindenburg report said it was betting against seven major publicly. Listed Adani companies, judging them to be “85% down, entirely. On fundamentals due to sky-high valuations.”
Adani built a fortune in business and coal mining. And then branched out into construction. Power generation, managing ports and airports, manufacturing defense equipment. And running a media company.
Before the latest issues, the Bloomberg Billionaires Index listed Adani. As the richest man in Asia and third richest in the world. Bloomberg’s ranking now places him as the 21st richest while his net worth. has dropped from $120 billion to $59 billion.