Hindenburg was a space ship transporting passengers from Germany to the US in 1937 when it crashed after a hydrogen leak caught fire in an electrostatic discharge. Hope this episode doesn't resonate in this latest newsbreak in the markets.The aforesaid name has been acquired by a US based financial firm.The aftermath of the Adani-Hindenburg row has made the market hyper volatile, with Adani shares tumbling and taking a hit with plummeting shares. Nearly Rs106 billion has evaporated from stock markets in a week.
A beleaguered and grim looking Adani made conscientious effort to arrest the slide with no obvious impact and soon retracted the FPO. It is learnt that they have put in a 413-page rebuttal.The task to uplift the shares is gigantic and huge and massive value of share market erosion has led to this downfall recently. Unhealthy and unethical market manipulations and artificial propping of share values contrary to their real values became noticeable in the Hindenburg radar which triggered the value of shares erosion worldwide. From our national perspective we depended on the Adani vehicle as a driving force to pull all prospective industries linked, to a higher level in GDP growth. Adani as a multifaceted scion and doyen of the top Adani conglomerate has been visibly hit due to this rundown in the markets.
There has been adverse seemingly crucial ability to raise funds in the capital markets. RBi were forced to check and monitor the banking sector's financial health because some of these large banks led by SBI have forwarded huge loans to the corporate giant but most in LOC ( letter of credit ), cash flows are still healthy. A 7-day loss of Adani companies like Ambuja Cements, Adani ports, Adani green energy, ACC, Adani transmission, Adani Wilmar, power that have placed them under watch list. etc led the slide and mid-way tailspin. Once the 2nd richest in the world now his networth slips by Rs 8.5 billion and drops out of a 5-member richest list. Additional SEBI and RBI monitoring has been put in gear in the wake of excessive volatility. Adani CEO dismisses allegations. We wish him best of luck to pull through this difficult and messy period to claw his way back in these tumultuous times .
