Wow. This is getting interesting day by day. But a bold move from the company. Let’s see what happens next.
Cynical ( perhaps baseless ) possibility can be that these were ‘fake’ investments to begin and they had to cancel after the fall. Would they have done this if retail had invested fully ? Accusations seem quite severe and from what i understood from finshots, response did not give any confidence. So ‘interest of investors is paramount’ seems like a joke.
Too much Leverage and pledging has humbled many (No idea on Adani and I dont read fundamentals). Great stocks for trading these days though. Hard to see them going back to multibagger moves in the short term.
20,000 crores ki chaal
Haar ke jeetne wale ko “Adani” Kahten hai ?
Probably the promoter shorted its own shares.
Hindenburg makes money, Adani makes money, while minority shareholders get slaughtered.
Who are these minority shareholders? I am sure they are high risk takers and must have made their money. With the withdrawl of FPO, I hope bank stocks, mainly PSU dont get hammered again.
Speculation. Now that FPO is subscribed and Adani has made his point wrt that:
- They don’t want ‘deep pockets’ to dump the shares in the open market after the FPO. 1000 cr dump can take market cap down by 50000 cr - especially now when it appears bear cartel has a hold.
- They hope some of these ‘deep pockets’ who get their money back will buy in the open market at lower rate - and prop up the share prices.
- Complementary “investor friendly” appearance by retrurning FPO amount.
Citigroup’s Wealth Unit Halts Margin Loans on Adani Securities
source : bloomberg.com
So Hindenburg’s allegations were correct?
Adani has no confidence in his own company.
Before FPO , he was very confident.
What we hear on the media is rarely black and white. It is mostly grey.
I kinda believe this a mess caused by RBI itself with interest rates. It’s lot like back in 2002 when FED chairman Greenspan lowered interest rate to create real estate bubble which imploded in 2008. Based on the video , Adani’s growth picked up exponentially just after 2021, which means entire growth was on cheap debt(when interest rate was lower), added to that many share holders have pledged Adani stocks which is kinda more fuel added to fire, it’s one big bubble. Now with higher interest rates that thing may mostly collapse and may take the banks & economy allong with it. The real question is what banks are going to be screwed, is RBI going to lower interest rate or go back to QE incase things get way worse.
Do you really follow this guy? I have seen his video and stopped. Many are sponsored but he does not put a disclaimer. Never liked his story telling.
RBI going to hike interest rates. FED just did it.
It will take another year to lower the interest rates. until then fraud companies like adani will continue to fall.
He gives some of the worst advice to get the views on YouTube.
His analysis is just text book. nothing new or insightful.
His advice on jobs, personal finance using debt , buy bussiness are all worse. But he presents fundamentals of stocks better. I only wanted a short gist of what was actually written in Hindenburg report.
From what I know Adani was already accused of having way too much loans especially by Subramanian swamy. You might remember he claimed " I have no NPA". Even in recent TV channel he said “I don’t have any unsecured loans”. But in reality his debts to liabilities ratio speaks something else . His entire growth was based on cheap credit when RBI lowered Interest rate 2021 , added to that all others have used adani stocks to pledge essentially creating a bubble. With higher interest rate & less spending all of that will most likely implode.
Time to lap up fundamentally good cos which have no links to Adani Group. All the money that comes out from Adani sell off will go to these stocks.
That is true.
There is this possibility, the pendulum could shift from greed to fear, investors run to safe havens, but this shelter could be short term too, until the air clears.
I personally see value in ACC. It was trading above its current CMP even before Adani bought. Even if Adani other companies are manipulated, fundamentally ACC should be fine.
Disclosure: Accumulating in the last few days below 2000
If you personally see value in anything, stock market doesn’t respect personal views. It is a representation of mass psychology.
Until you are not another Harshad Mehta…