After allegations of fraud by the Hindenburg Research report released on 24th Jan 2023 Adani’s reputation was in trouble. Now Credit Suisse has assigned zero lending value to Adani bonds, which means that Credit Suisse will not accept bonds of the conglomerate as collateral for margin loans to its private bank clients. Adani Enterprises shares crashed on 1st Feb 2023 trade. Their market cap eroded Rs. 1.84 Lakh crore.
The scrutiny of Adani Group bonds comes a day after Adani Enterprises’ Rs.20000Crs FPO ( follow on public offer) was successful on 31 Jan 2023, where only 13% retail investor invested and 87% big giant business bought FPO. But now after Credit Suisse intervention FPO investors may be in trouble. Therefore the board of Adani Enterprises has decided not to proceed with the fully subscribed FPO.
In their official statement they have mentioned ” Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction”. The indianexpress reported.
During Wednesday’s business trade Adani Enterprises shares crashed, it witnessed a fall of approx 35% (34.72% original) hitting a day low of Rs. 1942 and closed at 27% low. The firm has a negative P/E ratio of 307.65.
All listed Adani Group stocks (including recently acquired ACC, Ambuja Cements and NDTV) fell sharply Wednesday.
| Companies | BSE Prices |
| ADANI ENTERPRISES | 2,135.35 (-28.20%) |
| ADANI GREEN ENERGY | 1,155.35 (-5.60%) |
| ADANI TOTAL GAS | 1,897.40 (-10.00%) |
| ADANI TRANSMISSIONS | 1,723.50 (-2.85%) |
| ACC | 1,846.45 (-6.19%) |
| AMBUJA CEMENT | 334.10 (-16.72%) |
| NDTV | 235.70 (-5.00%) |
Gautam Adani’s ranking has come down to 15th position. The tycoon is out of the world’s top 10 richest people list. Will he be able to gain his fame back is a big question mark.
