Gautam Adani, Chairman of Indian conglomerate Adani Group, speaks at the World Congress of Accountants in Mumbai on November 19, 2022.
Indranil Mukherjee | AFP | Getty Images
shares of india Adani Enterprises There has been a decline in the past week, following the publication of a comprehensively critical report from US short-seller Hindenburg Research. There is exposure to some of the big international players.
The Adani group of companies has seen a massive sell-off, which pushed the group’s total losses to over $110 billion as of Friday, following a Hindenburg report that accused the group of “decades of brazen stock manipulation and accounting fraud scheme”. was accused of.
The port-to-energy conglomerate led by Gautam Adani, one of the world’s richest men, has denied wrongdoing.
Adani Enterprises has been the biggest loser among the wider group’s many listed companies, losing more than 60% of its market cap – or more than $30 billion – between the publication of the report on January 24 and the close of trading on Thursday .
The Adani Group strongly denied the allegations, calling them “nothing but lies” from the “Madoffs of Manhattan” in a 413-page repost that failed to calm volatile investor sentiment and rein in the rapid selloff.
Adani owns 64% of Adani Enterprises – the Adani SB family holds 55.27%, while 8.73% is held by Adani Tradeline Pvt Ltd, where Gautam and brothers Rajesh Adani are controlling directors.
Top 20 shareholders in Adani Enterprises
|Institute / Insider||possession (%)||shares (thousands)|
|Adani SB Family||55.3||630,034.7|
|Adani Tradeline Private Limited||8.7||99,491.7|
|Life Insurance Corporation of India||4.0||45,815.0|
|Green Enterprises Investments Hldg||3.5||40,191.0|
|flourishing trade and investment||3.0||33,937.7|
|afro asia trade and investment||2.7||30,249.7|
|Worldwide Emerging Markets HLDG||2.7||30,249.7|
|HSZ (Hong Kong)||1.7||19,295.4|
|Elara Capital Plc||1.7||19,190.1|
|MM Warburg Bank (Schweiz)||1.3||14,290.9|
|Vanguard Group, Inc.||0.7||8,497.0|
|SBI Funds Management Pvt.||0.6||7,195.0|
|Blackrock Fund Advisors||0.6||6,454.2|
|spitz business and investment||0.3||3,986.0|
|UTI Asset Management||0.2||2,237.5|
|Blackrock Advisors (UK)||0.2||1,901.3|
|Kotak Mahindra AM||0.1||1,281.8|
|Geode Capital Management||0.1||1,114.0|
|Dimensional Fund Advisor||0.1||831.1|
|Nippon Life India AM||0.1||737.3|
Source: According to FactSet, 3 February at 1030 UTC
The third largest shareholder, at 4.02%, is the state-owned Life Insurance Corporation of India. The morning session of both houses of India’s parliament was adjourned on Friday as opposition leaders demanded an inquiry into allegations against Adani, a close ally of Prime Minister Narendra Modi.
Indian Parliamentary Affairs Minister Pralhad Joshi reportedly told reporters on Friday that the government “has nothing to do with Adani affairs.”
The list of Adani Enterprises’ top 20 shareholders also includes two of the biggest names on Wall Street: Vanguard holds 0.75% of the stock, while Blackrock Fund Advisors holds 0.57% and Blackrock Advisors (UK) Ltd. holds a 0.17% interest.
Spokespeople for Vanguard and BlackRock did not immediately respond to CNBC’s requests for comment.
Elara Capital, which currently owns 1.7% of Adani Enterprises, was the largest institutional shareholder as of February 2022, ownership data shows.
Hindenburg has accused Elara’s Mauritius-based funds of being part of a scheme to manipulate the share prices of companies owned by the Adani group and to conceal how much the family owned. According to FactSet data, Elara has since disposed of 72% of its shares in the company.
Joe Johnson, brother of former British Prime Minister Boris Johnson, resigned on Wednesday from his role as a director of Elara, according to Companies House.
Elara Capital and Johnson did not immediately respond to CNBC requests for comment.