The tycoon’s decision to scrap a multi-billion dollar share sale this week could impact investor confidence in the emerging economy.
Just 10 days ago, Gautam Adani and his sprawling energy-to-ports empire looked invincible. Now, a damning short-seller attack has left the billionaire battling the worst crisis of his corporate life – and is raising bigger, darker questions about India’s credibility as a global growth engine and a destination for international investors.
The small, but famed, US short seller has revived old doubts about corporate governance at the Adani conglomerate. The fallout from its almost 100-page report threatens to undermine investor confidence in India more broadly, and in the nation’s regulatory framework – whether its claims ultimately prove to be true or not.
Banks such as HSBC and companies like Apple are expanding in India to hedge their exposure to China, where a government crackdown on businesses and an erratic pandemic policy have turned investors wary.“The truth is that Adani’s scandal is not coming at the best of all times for India as China is reopening,” said Alicia Garcia Herrero, chief economist for Asia Pacific at Natixis. “Foreign investors are clearly watching.
In a 413-page response, Mr Adani said Hindenburg’s conduct was “nothing short of a calculated securities fraud under applicable law”. Foreign institutional investors pulled a net $US2 billion out of India’s stock market from the country in January 27-31, the biggest three-day sell-off since March, data shows.“The Adani-related headlines are generating a high level of negative attention, which could dampen investor appetite for Indian stocks,” said Jian Shi Cortesi, a fund manager at Zurich-based GAM Investments, with more than $US80 billion in assets.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australian Test star left behind as national team flies out for India tourBREAKING: Visa issues have left batter Usman Khawaja at risk of being stranded in Australia while his teammates assemble in India for this month’s Test tour. 7NEWS
Read more »
Usman Khawaja stranded in Australia with visa issues ahead of India tourUsman Khawaja is facing visa issues that have the potential to keep him in Australia as his teammates are arriving in India for this month’s Test tour
Read more »
Usman Khawaja stranded in Australia as teammates head to IndiaThen newly-crowned Australian men's Test player of the year has been left at the airport while his teammates jet off to the subcontinent for a massive series against India.
Read more »
Khawaja’s India arrival delayed by visa processPakistan-born Usman Khawaja was unable to join his Australian teammates on either of their two flights to India over the past 36 hours as he is still awaiting a visa from the Indian government.
Read more »
Visa issues leave Usman Khawaja 'stranded' in Australia ahead of India tourUsman Khawaja is facing visa issues that have the potential to keep him in Australia as his teammates are arriving in India for this month's Test tour.
Read more »
Khawaja 'stranded' as India visa issue arisesBreaking news 👀 Uzzie was not able to travel with his teammates.
Read more »