India’s central bank asks banks for details of exposure to Adani group – sources

NEW DELHI/MUMBAI – India’s central bank has asked local banks for details of their exposure to the Adani group of companies, government and banking sources said on Thursday.

The Reserve Bank of India did not immediately respond to a request for comment. The sources were speaking to Reuters and declined to be named because they were not authorized to speak to the media.

Shares in Adani group of companies plunged on Thursday after the tycoon Gautam Adani-led conglomerate shelved a $2.5- billion share sale amid a turbulent market, citing the need to insulate investors from potential losses.

Adani on Wednesday called off the share sale as a rout sparked by a U.S. short-seller’s criticisms wiped billions more off the value of the Indian tycoon’s stocks.

Shares in Adani Enterprises dropped 8 percent, after opening 10 percent higher, while Adani Ports and Special Economic Zone fell 10 percent.

Adani Total Gas was down 10 percent, Adani Power lost 5 percent, Adani Wilmar sank 5 percent while Adani Green Energy tumbled 10 percent.

The withdrawal of the Adani Enterprises share marked a stunning setback for Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years in line with the stock values of his businesses.

“Today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the company’s board felt that going ahead with the issue will not be morally correct,” Adani said late on Wednesday.

Citigroup‘s wealth unit has stopped extending margin loans to its clients against securities of Adani group, a source with direct knowledge of the matter said.

READ MORE: 

Gautam Adani no longer Asia’s richest person as stock rout deepens to $74B

Australian regulator to review short-seller report on India’s Adani