The combined equity market value of the Adani Group’s 10 companies slipped below $100 billion on Tuesday as the embattled conglomerate struggles to reassure investors following a scathing report by a US short seller.
The ports-to-power group has now lost about $138 billion in market capitalisation since January 24, when US-based Hindenburg Research published a report alleging accounting fraud and stock manipulation — accusations that the conglomerate has denied repeatedly.
Billionaire Gautam Adani and his eponymous companies have hired legal and communication teams, cut expenses and repaid debt as they seek to calm traders concerned about the group’s access to financing.
While the campaign brought the conglomerate’s dollar bonds back from distressed territory, the continued equity sell-off is an indication that more is needed.
“Capex [capital expenditure] and debt remain major concerns,” said Sameer Kalra, founder of Target Investing in Mumbai. “These can further weigh on valuations.”
The group tapped international bond buyers for more than $8 billion in recent years, while also turning to global banks for at least as much in foreign-currency loans, data compiled by Bloomberg shows.
Rating agencies have also revised the outlook for some companies, including Adani Green Energy and Adani Ports & Special Economic Zone.
Adani and his companies are now prioritising financial health over the aggressive debt-driven expansion spree of recent years.
The group’s focus has shifted to cash conservation, debt repayment and recovering pledged shares as it attempts to repair the damage caused by Hindenburg’s report.
Six out of the group’s ten stocks fell on Tuesday. Flagship Adani Enterprises closed 3.1 per cent lower while Adani Ports rose 0.6 per cent.
Adani Green, Adani Transmission and Adani Total Gas each fell by 5 per cent limit, while Adani Power rose by a similar magnitude.
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
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What are the main cyber security threats?
Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.
