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Adani group’s market losses hit $100 bn as stocks sink after botched share sale

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Adani group's market losses hit $100 bn as stocks sink after botched share sale

India’s Adani group shares plunged on Thursday after the Gautam Adani-led conglomerate shelved a $2.5 billion share sale amid a turbulent market, bringing its cumulative market capitalisation losses to $100 billion since last week’s short-seller attack.

The withdrawal of Adani Enterprises’ (ADEL.NS) share sale marks a dramatic setback for Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years in line with the stock values of his businesses.

Adani on Wednesday called off the share sale as a stocks rout sparked by US short-seller Hindenburg’s criticisms deepened, despite the offer being fully subscribed on Tuesday. In the fallout of the short-seller’s attack, Adani has also lost his title as Asia’s richest man.

The group’s flagship firm – Adani Enterprises (ADEL.NS) – plunged 10% after opening higher on Thursday. Other group companies – Adani Ports and Special Economic Zone (APSE.NS), Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS) and Adani Transmission (ADAI.NS) – fell 10% each, while Adani Power (ADAN.NS) and Adani Wilmar (ADAW.NS) dropped 5% each.

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The stocks tumble and shelving of the share sale mark an embarrassing turn of events for the billionaire who has forged partnerships with foreign players in his global expansion of businesses that stretch from ports to mining to cement.

Adani is now the world’s 16th richest, as per Forbes’ list, down from third rank last week.

India’s central bank has asked local banks for details of their exposure to the Adani group of companies, government and banking sources told Reuters on Thursday. CLSA estimates that Indian banks were exposed to about 40% of the 2 trillion rupees ($24.53 billion) of Adani group’s debt in the fiscal year to March 2022.

Earlier this week, the Adani group said it had the complete support of investors, but investor confidence has tapered in recent days.

Citigroup’s (CN) wealth unit has stopped extending margin loans to its clients against securities of Adani group, a source with direct knowledge of the matter said on Thursday. Citi declined to comment.

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Hindenburg’s report last week alleged an improper use of offshore tax havens and stock manipulation by the Adani group. It also raised concerns about high debt and the valuations of seven listed Adani companies.

The Adani group has denied the accusations, saying the short-seller’s allegation of stock manipulation has “no basis” and stems from an ignorance of Indian law. The group has always made the necessary regulatory disclosures, it added.

As shares plunged after the Hindenburg report, Adani managed to secure the share sale subscriptions on Tuesday even though the stock’s market price was below the issue’s offer price. But on Wednesday, stocks plunged again.

In a late night announcement on Wednesday, Adani said he was withdrawing the share sale as the company’s “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.”

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Rahul Gandhi: India’s Congress leader sentenced to jail for Modi ‘thieves’ remark

Rahul Gandhi: India’s Congress leader sentenced to jail for Modi ‘thieves’ remark

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Rahul Gandhi: India's Congress leader sentenced to jail for Modi 'thieves' remark

Indian opposition leader Rahul Gandhi has been sentenced to two years in prison in a criminal defamation case.

Mr Gandhi was convicted by the court in Gujarat state for 2019 comments about Prime Minister Narendra Modi’s surname during an election rally.

He will not go to jail immediately – he was granted bail for 30 days and will file an appeal against the conviction.

The Congress party MP was present in court for sentencing, which comes a year before general elections are due.

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Speaking at an election rally in Karnataka state in April 2019, ahead of the last general election, Mr Gandhi had said: “Why do all these thieves have Modi as their surname? Nirav Modi, Lalit Modi, Narendra Modi.”

Nirav Modi is a fugitive Indian diamond tycoon while Lalit Modi is a former chief of the Indian Premier League who has been banned for life by the country’s cricket board. Mr Gandhi argued that he had made the comment to highlight corruption and it was not directed against any community.

The case against him was filed on the basis of a complaint by Purnesh Modi, a lawmaker from India’s governing Bharatiya Janata Party, who said that Mr Gandhi’s comments had defamed the entire Modi community.

But some have said they are puzzled by the order.

Legal scholar Gautam Bhatia tweeted that “references to a generic class of persons” – surnames in this case – are not “actionable unless an individual can show a direct reference to themselves”.

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“If a man says ‘all lawyers are thieves’, then I, as a lawyer, cannot file a case against him for defamation unless I can show its imputation aimed at me,” Mr Bhatia said.

India’s criminal defamation law is British-era legislation under which there can be a maximum prison sentence of two years, a fine or both.

Free speech advocates have often argued that the law goes against the principles of freedom and that it is is used by politicians to silence their critics.

In 2016, some top Indian politicians including Mr Gandhi filed legal pleas arguing for defamation to be decriminalised. But India’s Supreme Court upheld the validity of the law, saying that the “right to free speech cannot mean that a citizen can defame the other”.

The Congress party tweeted that Mr Gandhi would appeal and said “we will fight and win”.

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Mr Gandhi has not commented publicly yet but has tweeted a quote in Hindi from India’s independence leader Mahatma Gandhi: “My religion is based on truth and non-violence. Truth is my God, and non-violence the means to get it.”

His lawyer, Kirit Panwala, told BBC Gujarati that Mr Gandhi had told the judge after the order that he had made the speech “in favour of democracy”.

He also said that their defence of Mr Gandhi was based on four points: “Firstly, Mr Gandhi is not a resident of Gujarat and so, before the complaint, an inquiry should be conducted. Secondly, there is no community named Modi. Thirdly, there is no association of people with Modi as their surname and lastly, there was no ill intention behind Mr Gandhi’s speech.”

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Lebanese security forces fire tear gas at crowds protesting pound devaluation

Lebanese security forces fire tear gas at crowds protesting pound devaluation

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Lebanese security forces fire tear gas at crowds protesting pound devaluation

Lebanese security forces on Wednesday fired tear gas at hundreds of protesters, mostly retired members of the security forces, who had gathered near government buildings in Beirut in anger at deteriorating economic conditions.

Crowds gathered in the streets of downtown Beirut between parliament and the government serail, carrying Lebanon’s tricolour or flags bearing the logos of security forces.

They were outraged at the deteriorating value of state pensions paid in the local currency. The pound has lost more than 98% of its value against the U.S. dollar since 2019.

“Our kids are hungry. We’re hungry,” said Mohamad el-Khateeb, a 59-year-old who had served in the army for 32 years.

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“We left the army with nothing. No healthcare, no welfare, our kids are out of school and prices are rising obscenely. What do you expect?” Khateeb told Reuters.

Some of the men tried to cross one of the checkpoints leading to a government building, prompting security forces to fire tear gas to keep them back, according to a Reuters witness.

Protesters dashed away from white clouds emanating from locations around the serail. One soldier was seen treating a young boy who was affected by the tear gas.

“If he fires on us, he’s firing on our rights and on his rights at the same time,” said army veteran Ahmad Mustafa, 60.

“He’s suffering just like me,” he told Reuters, clutching two of the tear gas canisters fired just moments earlier.

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There was no immediate statement from the Lebanese army.
Lebanon’s economic meltdown began in 2019 after decades of profligate spending and alleged corruption. Its onset prompted the most wide-ranging protests the country had seen in years, but they fizzled out and rallies have been sporadic since.

The country’s top financial and political leaders have allowed the crisis to fester, with the Lebanese pound hitting an all-time low of 140,000 to the U.S. dollar on Tuesday before an intervention by the country’s central bank.

Lebanon’s army troops and members of the security forces are receiving salary support in U.S. dollars from the United States and Qatar for the first time.

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Four killed in Russian drone strike on Kyiv region, officials say

Four killed in Russian drone strike on Kyiv region, officials say

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Four killed in Russian drone strike on Kyiv region, officials say

 At least four people were killed early on Wednesday in a Russian drone strike near Kyiv which Ukrainian President Volodymyr Zelenskiy said showed Moscow was not interested in peace.

The State Emergency Service said on the Telegram messaging app that two dormitories and an educational facility in Rzhyshchiv, 40 miles (64 km) south of the capital, had been partially destroyed in the overnight attack.

Regional police chief Andrii Nebytov said 20 people had been taken to hospital and several were still missing following a series of explosions after 3 a.m. (0100 GMT) that killed four people.

A large part of the top floor of a five-storey dormitory building had been knocked out by the attack. Workers in white helmets and reflective jackets clambered through the rubble of another badly damaged building.

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“We see that the enemy has once again attacked civilian infrastructure (and) innocent people have died,” Nebytov wrote on Telegram, adding that one of the victims was an ambulance driver who had arrived to help.

State emergency officials said the search for survivors was continuing after attacks that the Ukrainian military said involved Iranian-made Shahed drones.

“Over 20 Iranian murderous drones, plus missiles, numerous shelling incidents, and that’s just in one last night of Russian terror against Ukraine,” Zelenskiy wrote on Twitter.

“Every time someone tries to hear the word ‘peace’ in Moscow, another order is given there for such criminal strikes.”

The Ukrainian military said it had shot down 16 of the 21 drones launched at Ukraine overnight from the north.

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Russia, which invaded Ukraine 13 months ago, did not immediately comment on the latest attacks.

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