Who Are Among The World's Richest People & Companies That Are Exposed To Adani Stocks?
Investors and joint venture partners of numerous firms of Adani Group are now exposed to the market turmoil amid one of the most talked about selloffs in the country's corporate history.
As Adani group shares continue to witness a bloodbath nearly two weeks since the Hindenburg report rattled the group, it has now come to light that investors and joint venture partners of numerous firms of Adani Group are exposed to the market turmoil.
This comes amid one of the most talked about selloffs in the country's corporate history after the Adani group was accused of fraud by US-based short-seller Hindenburg Research.
Rich Magnates & Companies Exposed To Adani Group
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According to a Bloomberg report, these rich magnates and corporations, from Virginia to Marseille and West Asia, include:
1. Wilmar International, controlled by the family of the richest person in Malaysia.
2. Retail giant Walmart, roughly half of which is owned by the world's second-richest family, the Waltons
3. EdgeConneX, a Virginia-based data centre services company
4. CMA CGM, the world's third-biggest container shipping company
5. Gadot Group, a chemicals supplier
6. Abu Dhabi-based International Holding Company, which is Adani Group's most critical backer
Also Read: Meet Nathan Anderson, The Man Behind Hindenburg Report
LIC & SBI's Exposure TO Adani
As far as Indian lenders are concerned, banks have an exposure of Rs 80,000 crore to the Adani group, as per TOI, SBI leads the pack with Rs 27,000 crore exposure, besides Bank of Baroda's exposure of around Rs 5,500 crore and PNB's Rs 7,000 crore.
LIC has said it has exposure of Rs 36,474.78 crore to Adani group's debt and equity. The insurer also has stakes in other Adani group companies 9.14% stake in Adani Ports and 5.96% in Adani Total Gas, as per the report.
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Adani Group grew rapidly in recent years as its parent entity Adani Enterprises Limited (AEL) surged more than 1,600 per cent in 12 months, peaking in December, as per the report. As a result, Gautam Adani, founder of Adani Enterprise Ltd, became the second-richest person in the world, according to the Bloomberg Billionaires Index.
Last week, Gautam Adani lost the title of Asia and India's richest person to Reliance's Mukesh Ambani, as the former's wealth keeps tumbling amid the Adani group's stock bloodbath.
Adani's U-turn Amid Hindenburg's Unanswered Allegations
For the uninitiated, the Hindenburg report alleged that most of that massive and sudden growth was fueled by excessive brazen stock manipulation. While Adani group has continued to deny these allegations, its chairman Gautam Adani took a U-turn last week when he called off the fully subscribed follow-on public offering (FPO) of Adani Enterprises.
It is expected that the turmoil surrounding Adani's businesses means consequences that will be echoed beyond India. In its research report revealed on 24th January 2023, Hindenburg had put forth 88 questions which are yet to be answered by Adani.
Adani Group Loans Halted By Big Lenders
After Switzerland's second-biggest bank Credit Suisse and the Citi group halted loans to the Adani group last week, Standard Chartered too has done so.
TOI
Standard Chartered has stopped accepting bonds of Adani Group firms as collateral on margin loans, as per ET. Some of the relationship managers of UK-based StanChart, which has a significant presence in Asia, have informed their private wealth clients in the region's large markets like Singapore that the bank would not accept these papers as collaterals for margin loans, one such customer told ET. As per ET, the decision, albeit a temporary one, was taken amid volatility in Adani bond prices.
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