Many of Wall Street’s Biggest Names Have Exposure to Adani Enterprises Stock Blowup Following Fraud Allegations
- Adani Enterprises suffered a loss of more than 60%, or $30 billion, in its market cap between January 24th and Thursday trade.
- Two of Wall Street’s most prominent names are among the top 20 Adani Enterprises shareholders.
India’s Shares Adani Enterprises The stock market has plunged in the last week following the publication A comprehensive critical report Hindenburg Research, a U.S. short-seller. Exposure is available to some major international players.
The Adani Group of companies has seen a major sell-off, pushing the group’s losses over $110 billion on Friday close. This was after the Hindenburg Report accused the conglomerate. “brazen stock manipulation and accounting fraud scheme over the course of decades.”
Gautam Adani is the head of the ports-to-energy conglomerate. He has repeatedly denied any wrongdoing.
Adani Enterprises has suffered the biggest loss among the wider group’s many listed companies, shedding more than 60% of its market cap — or more than $30 billion — between the report’s publication on Jan. 24 and the close of Thursday trade.
The Adani Group strongly denies these accusations and calls them “false” “nothing but a lie” From the “Madoffs of Manhattan” In a 413-page riposte It failed to soothe investor fears and rein in a swift sell-off.
Adani owns 64% of Adani Enterprises — the Adani SB Family holds 55.27%, while 8.73% is with Adani Tradeline Pvt Ltd, where Gautam and brother Rajesh Adani are controlling directors.
Top 20 Adani Enterprises Shareholders
| Institutions/Insiders | Ownership (%) | Shares (thousands of dollars) |
|---|---|---|
| ADANI SB FAMILY | 55.3 | 630,034.7 |
| Adani Tradeline Pvt Ltd | 8.7 | 99,491.7 |
| Life Insurance Corporation of India | 4.0 | 45,815.0 |
| Green Enterprises Investment Hldg | 3.5 | 40,191.0 |
| Flourishing Trade & Investment | 3.0 | 33,937.7 |
| Afro Asia Trade & Investments | 2.7 | 30,249.7 |
| Worldwide Emerging Market Hldg | 2.7 | 30,249.7 |
| HSZ (Hong Kong). | 1.7 | 19,295.4 |
| Elara Capital Plc | 1.7 | 19,190.1 |
| M.M. Warburg Bank (Schweiz) | 1.3 | 14,290.9 |
| The 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 |
| Spitze Trade & 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 Advisors | 0.1 | 831.1 |
| Nippon Life India AM | 0.1 | 737.3 |
India’s state-owned Life Insurance Corporation of India is the third largest shareholder with 4.02%. The morning sessions of both India’s parliament houses were canceled on Friday as opposition leaders demanded an investigation into allegations against Adani who is close to Prime Minister Narendra Modi.
Pralhad Joshi, Indian Minister of Parliamentary Affairs, reportedly told journalists that Friday’s meeting was a “recording.” Government “has nothing to do with Adani matters.”
The top 20 shareholders of Adani Enterprises include two of Wall Street’s biggest names: Vanguard has 0.75% and BlackRock Fund Advisors has 0.57%. BlackRock Advisors Ltd, U.K., holds 0.17%.
CNBC did not receive a response from BlackRock and Vanguard spokespersons.
Elara Capital currently holds 1.7% of Adani Enterprises. This is according to ownership data.
Hindenburg has charged Elara’s Mauritius-based fund funds with being part of a scheme to manipulate the share price of Adani Group companies and conceal the family’s ownership. According to FactSet data, Elara has since sold 72% of its shares in the company.
Companies House reports that Jo Johnson, brother to former British Prime Minister Boris Johnson has resigned as Elara director.
Johnson and Elara Capital did not respond immediately to CNBC’s requests for comment.
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