NEW DELHI, Feb 3 (Reuters) - Companies of India's Adani
Group saw their share prices extend declines on Friday amid
continued selling pressure as well as concern about any systemic
impact from disarray triggered by a U.S. short-seller report
critical of the group's finances.
Spooked investors have lopped off more than $100 billion
from the market capitalisation of seven of the group's listed
stocks since Hindenburg Research last week questioned the
group's debt levels and use of tax havens.
Declines intensified after billionaire leader Gautam Adani
shelved a $2.5 billion share sale which would otherwise have
taken place at the height of the rout.
In an extra blow, S&P Dow Jones Indices on Thursday said it
would remove flagship firm Adani Enterprises Ltd from
widely used sustainability indices on Feb. 7, making the shares
less appealing to environment-conscious investors.
Meanwhile, lawmakers have called for a wider probe into the
matter, and the central bank has asked lenders for details of
their exposure to the group, sources previously told Reuters.
In Friday morning trade, Adani Enterprises plunged 10% to
its lowest since October 2021, taking losses to $28 billion
since last week.
Adani Ports and Special Economic Zone Ltd , Adani
Transmission Ltd and Adani Green Energy Ltd also slumped 10% each. Adani Total Gas Ltd fell 5%.
The meltdown in share prices marks a dramatic turn of
fortune for Adani, who in recent years forged partnerships with,
and attracted investment from, foreign giants as he pursues
global expansion in sectors as varied as ports and power.
Adani is also no longer Asia's richest person, having slid
to 17th in Forbes' rankings of the world's wealthiest people.
(Reporting by Aditya Kalra and Chris Thomas; Editing by
Christopher Cushing)
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