Why Did Adani Withdraw his so called "FULLY SUBSCRIBED" FPO?
If you follow the lamb-driven Stenographer Indian Media, you must have heard "Adani said that is to protect FPO investors, who actually paid double the market Price (Of course, that level is only because of lower circuit.. real value is much lower) in FPO"
Reality Is this Forbes report , which found proof of stock manipulation and fraud in FPO sale also.
Two more "Modi Toadie Billionaires" got embroiled into infamy in this FPO episode of AdaniGate , Mr. Modi-bhakt Jindal and Mr. Modi-Bhakt S. Mittal. As more clamouring started happening in New York circles as is to who is actually paying for $2.5 Billion share sale.
Subsequently, even Citigroup stopped taking Adani group stocks & bonds as collateral for margin loans.
DID ANY INDIAN JOURNALIST TELL YOU ABOUT THAT, even on YouTube? Slim chances, very very slim.
Even Credit Suisse, who loaned Adani a lot to let him pull the Lafarge Cement deal.. had decided what Citigroup did yesterday.
Maybe BNP also, although haven't seen a press report about that yet. So Adani has no way to get any new Foreign Bank Loans. Surely Foreign Vessel Shipping Agent's Fees alone can't provide Adani the foreign currency required to run .. ports, airports, power transmission, green power generation etc.
NO FOREIGN BANK WILL GIVE HIM LOAN
Period.
HOW MUCH MORE WILL ADANI STOCK FALL?
Some overnight experts are saying "Hindenburgresearch said 85% overvalued, so upto total 85%".
Now if a stock becomes Overvalued because of market conditions or windfall by X%, then that can correct around that percentage.. (For example, Amazon or Zoom share price rise during Pandemic.. or even Moderna in last 2 years)!
But if a stock becomes Overvalued because of fraud and manipulation, then it loses much more than just Over-valuation .. then it loses its goodwill and investor confidence.
The very young would not remember what happened to Suzlon or for that matter Satyam Computers (which was 4th biggest IT player in India then).
Adani group is heading towards the bottom of a dark, very dark abyss and it will take some its sponsors with it too.
If Former ICICI Bank CEO was arrested for Bad Banking Loans .. Why isn't ED & CBI investigating those CEOs and Chairpersons, who gave Adani "Collateral Free Loans"?
I am no fan of Chanda Kochhar, but few Adani friendly Bankers and Investors do come to my mind, Ms. Arundhuti Bhattacharya & Mr. Rajnish Kumar of SBI and M.R. Kumar of LIC definitely were closer than close. Uday Kotak was also very close to Adani.
Meanwhile, it has been reported in Indian Media ( which means it could also be untrue ), RBI has asked all domestic banks to declare their exposure to Adani group.
Now PMO will be very unhappy, if any Bank proved "Zero Exposure To Adani". How dare they not invest or loan to PM's favourite crony.
On 27th Jan, I heard Indian Regulator "SEBI" had started reading the "Hindenburgresearch report" .. One week has passed by .. I guess they are still reading. Because No Indian Media Lamb has bothered to ask SEBI , "Have you finished reading?"
SEBI's slow reading can only be compared to RBI's counting of demonetised currency notes. Both never ending Saga.
One after another big foreign banks are refusing to accept Adani stocks and bonds as collateral for loans .
ReplyDeleteBut NO INDIAN FINANCIAL ORGANISATION got balls to do the same.
Adani can still get Trillions of Indian Rupees from Indian Banks, starving real economy of much needed credit. These Indian Banks are merely "Upgraded Sahukars of Ruling Party"
In Other News, Adani crashed out of Top 20 Richest on Thursday end after losing 49.1% value in his declared portfolio.
ReplyDeleteThis despite Adani stocks kept hitting Lower circuits and were unable to trade.
His downward momentum is far too great to stop his falls in each subsequent trading day.