[WindRide]

Originally Posted by how_you_doing

If virtue signaling had been an Olympic sport, we Indians would always have at least 1 guaranteed gold.

1. South Korea gave all its resources to Samsung and a few other companies as they wanted to build a war economy. This is why they moved from a developing to a developed country in just one generation.

2. China provided all the protection to their companies. Their navy goes with their shipping vessels to protect them.

3. US companies bribe their government in the name of lobbying.

How dare India think of talking about being a 30 Trillion dollar economy and multiple trillion dollar companies? Don't you know only Chinese, Japanese, Americans, and Koreans are allowed to work in grey areas and dream big?

Plenty of Indians live in their la la land and suffer from crab mentality where they hope our own to fail. I guess they are hoping to revive bidi/agarbatti industry to make 10 Trillion USD by 2033.

1. Businesses worth billions of dollars can't be built without government help unless you are into new technology or willing to grind for decades. Do you really think Adani can build the port, roads, cities, clean energy, etc without working closely with the government?

2. All the businesses that Adani Group is in, need massive capital to grow. India needs 10 more Adani, Ambani and Tata and their ambition to be a 30 Trillion USD economy. As we have seen from 1960s to 1980s, the government is too slow and can't do this.

I don't follow Adani group or the stock market. I won't be surprised if they worked in grey areas but then who isn't working in the grey areas?

Adani will be fine. The social justice warriors who become overnight experts in farm laws, the army, and now auditing will find something new in the next few weeks.

Good post. Most people are looking at this from right/wrong angle. Mega corporates, without exception, live in the dark grey areas with cover fire provided by their governments.

We are doing now what the west ("advanced" nations) has been doing for generations. And to those who think Adani is the first Indian corporate with govt patronage, please revise history lessons.

[dragonfire]

Originally Posted by extreme_torque

Just a correction - the rise has been meteoric in the last 2 years. In 2019 his wealth was a mere $8.7bn

It is all relative. A google search tells me that Adani's turnover which in 2003 was around 4000 Cr, grew to 75000 crore by 2014.

In 2003 he and a few "friends" created the "Resurgent Group of Gujarat" and took on the CII and his growth story starts after that. It was this that resulted on Adani becoming the favored business house for the group in power.

[Spaced Out]

Originally Posted by how_you_doing

How dare India think of talking about being a 30 Trillion dollar economy and multiple trillion dollar companies? Don't you know only Chinese, Japanese, Americans, and Koreans are allowed to work in grey areas and dream big?

Originally Posted by extreme_torque

If aim to prosper the population and not just a wealthy few, crony capitalism can never be the answer.

I want to share this LinkedIn post by Nachiket Mor. Please read with care. Also, he is no social warrior but an ex-banker who has been in the lead on financial inclusion at RBI as well.

Here is the link to the LinkedIn post, copied below. Italics added for emphasis by me.

There has been much worrying discussion about India’s high and growing levels of inequality.

What concerns me is an added factor about our situation, which is that while only a tiny proportion of Indians (8%) make more than $10 a day (the global middle-class threshold), in absolute numbers, we make up 100 million people and account over 50% of India’s GDP of over $3 trillion, giving us a per-capita income of $15,000 in nominal terms. This is a large enough market to function independently and benefit from all the luxury on offer without worrying about the other 1,200 million Indians. Much of the benefits of growth are also captured by us, with very little trickling down to the 1,200.

To make matters worse, since the 1,200 are desperately looking for any possible means to sustain themselves and are restricted to offering their services only within India, the wages they are willing to work for are so low that in purchasing power terms, they help propel our $15,000 per capita income to a lifestyle equivalent to that of people living in some of the wealthiest countries in the world, such as Sweden and Denmark, with $60,000 per capita incomes, with no real benefits accruing to them.

Even with the modest growth levels, given our sheer size, there is little doubt that we will become the 2nd largest economy in the world by 2050. However, I fear that this growth, even if accelerated, and our large size as an economy will not change the reality mentioned earlier very much.

Changing that will need us to focus on this large group and ask, even at the cost of national growth, what they need to live their lives better at their current incomes and how their own engines of growth can be activated. Better healthcare will improve current welfare dramatically. Better education, access to financial services in the remotest districts, and the benefits of urbanisation made available to densely populated rural settlements could open up growth opportunities.

[alphamike_1612]

Economic Times article on a "behind the scenes" of the FPO.
Link

[rx100]

Real carnage in Adani group stocks especially the flagship Adani Enterprise, at one stage it was as down 30%.

[csnanjappa]

Pity 10% of retail investors who brought the FPO at 3200, it's almost of discount of 1000 Rs. Along with this LIC is also down 8% today, but that might be due to the reason that people might be not so inclined in tax savings instruments after the new tax regimes.

[poloman]

In India, the biggest money making business is politics. Every so called big conglomerate company will have huge share holding from politicians through shell companies and round tripping. Every party will have their own cronies. Who are the people behind the shell companies in Mauritius and other tax heaven with huge investment in these companies is any one's guess. I am not hinting at any party here. All are same.

So people like us will only the tip of the iceberg when it come to the company structure, financials or share holding pattern. Most of them are family businesses. So what ever appear in media or the reasons behind stock movements will be mostly beyond the understanding of retail investors. So this FPO was some how made not to fail. Who all played in the background will remain in background. I don't care about rise or fall of stock prices of such companies at all. These are most probably dummy retail investors to make this look non suspicious.

Be it Adani or any other company as citizens we all should be worried about this non equitable development. Funneling of nations money to the hand of few. Why should a person/company put his hand in every conceivable business out there from apples to oil to telecom to kirana store to power to supermarket to toys to apparels to everything under sun and driving all other businesses out of business?

[deetee]

Originally Posted by deetee

..
But, when (not a question of 'if') the ship goes under water, the retail investor will be left to fight for his money. For retail investors, it is very important to not be caught in these chaos.
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.
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However, lets say, some retail investor has purchased stock for Rs.3000 and is holding with expectations of another high (which may never come btw), they may be left to bleed slowly like it happened with many companies earlier.

Originally Posted by csnanjappa

Pity 10% of retail investors who brought the FPO at 3200, it's almost of discount of 1000 Rs.

The writing was on the wall, yet some retail investors blinded by hope or what not, would have tested their luck and will be now left looking down a rabbit hole.
Nothing happens to the HNI or 'other institutional investors', their money goes a full circle and comes back.

[deehunk]

Originally Posted by deetee

Nothing happens to the HNI or 'other institutional investors', their money goes a full circle and comes back.

This is like a Banknifty crash, selling at an inflated price, crashing the market, and buying back to make multiple profits. I doubted Adani's credibility ever since an organized loot was carried out of the confiscated iron ore from Belekeri port.

[ambarkhan]

Credit Suisse stops accepting bonds of adani. Final nail in coffin ?
https://www.livemint.com/companies/n...235285424.html
Watch 1:20 onwards

https://youtu.be/B0Pjpz4dOl4?t=87

[Dr.Car]

Originally Posted by how_you_doing

2. All the businesses that Adani Group is in, need massive capital to grow. India needs 10 more Adani, Ambani and Tata and their ambition to be a 30 Trillion USD economy. As we have seen from 1960s to 1980s, the government is too slow and can't do this.

I don't follow Adani group or the stock market. I won't be surprised if they worked in grey areas but then who isn't working in the grey areas?

Adani will be fine. The social justice warriors who become overnight experts in farm laws, the army, and now auditing will find something new in the next few weeks.

No offence please but in that case I'd like to ask you if becoming a larger economy is what development is all about? We are currently the fastest growing economy and there isn't any doubt about it but our GDP per capita is at shockingly low levels.

We'll surely become a Trillion dollar economy if we have 10 more Ambani's and Adanis but I'm pretty sure that's not gonna benefit the common man or even the high tax paying individuals in any way! The wealth in this country is just being accumulated in the hands of top 1% people while the others are being fed with the narrative that the country is developing at a fast pace. There hasn't been any real life improvement in the lives of 99% people and the trends look like this going to continue!

[whitewing]

Originally Posted by deehunk

This is like a Banknifty crash, selling at an inflated price, crashing the market, and buying back to make multiple profits. I doubted Adani's credibility ever since an organized loot was carried out of the confiscated iron ore from Belekeri port.

OT
Ah! The impact of that forgotten chapter in nation building was not just limited to the missing shiploads of iron ore. I still remember the BH road looking reddish due to the ore dust. Not to mention the horrible road surface due to the constant heavy truck traffic.

The lokayukta who was very active against corruption(Justice Hegde) resigned in protest against the political interference in the work of his officers.
Post that, the institution seems to have gone into a slumber.

[jaaz]

What is the benefit of having 5, 10, 50 trillion economy, if it cannot uplift a Country or benefit the population at large or rise the standard of living of all. Money and Power in few hands always corrupt the Individuals. There's a new word Oligarch.

The Money pumped in through FPO is our own money, which is corrupt / black or dirty money, brought in as clean money. No doubt Swiss deposits have gone up by 50% rather than declining.

[Bhargav7]

Originally Posted by rx100

Real carnage in Adani group stocks especially the flagship Adani Enterprise, at one stage it was as down 30%.

Looking at the price movement today, it is very hard to argue that there is no price manipulation in the stock price so far. Equally surprising is that the FPO is fully subscribed.

Reuters reported that SEBI is investigating Adani. We have to wait and see if that is the case.

[volkman10]

Indian market regulator examining Adani share rout: Reuters

India's market regulator is examining a recent crash in shares of Adani Group and looking into any possible irregularities in a share sale by its flagship company

Adani stocks suffer new setback on Indian bourses
Stocks plunge day after successful share sale
SEBI looking into possible irregularities in $2.5 bln share sale
Billionaire slips out of top 10 on Forbes rich list
Adani Enterprises, Adani Ports suffer worst day on record

Link