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As of September 2020, the Life Insurance Group has significantly increased its position in four of the seven public companies of the Adani Group, according to press reports.
According to The Indian Express, which cited data from a listed business company, the total value of the state-owned utility’s stake in the 7 companies of the Adani group currently stands at Rs 74,142 crore.
The public company’s stake in Adani Total Gas saw the biggest increase under LIC’s Adani Group ownership, rising from less than 1 percentage point in autumn 2020 to 5.77% in September 2022.
Similarly, LIC increased its stake in Adani Enterprises, the conglomerate’s parent company, by less than 1 percentage point to 4.02%. Its holding in Adani Transmission rose from 2.42 percentage points to 3.46%, and its holding in Adani Green Energy rose from less than 1% to 1.15%.
Three Adani Group companies — Adani Ports, Adani Power and Adani Wilmar — have smaller stakes in each of the others. Business Standard states that Adani Group is the third largest company in which LIC has invested, after only Tata Group and Reliance Industries.
Morning Context claims that LIC’s investment in the Adani group over the past two years has been 4.9 times its equity investment in the same stock. Across the five Adani Group companies, the public service initiative alone accounts for 81.7% of domestic investment, according to reports.
An unnamed business adviser claims the state-owned insurer has been unduly increasing its holdings in Adani shares. The adviser complained that “LIC is increasing its holdings in AEL [Adani Enterprises Limited] every month without any justification.” “The shares of LIC must be opened as an insurance company for the benefit of the policyholders.” That assumption, in my opinion, has been undermined by this purchase of Adani shares.
As of September, LIC has assets of Rs with various crores. 20.3% of them, or 8.31 lakh crores, were owned. From its shares, the insurer earned Rs 42,000 crore in 2021-22, up from Rs 37,000 crore the previous year.
Expansion of the Adani Group
The same interests of the Adani Group have recently expanded to include defence, urban flood mitigation, SME credit, transmission system, aviation, data centres, cement and green energy, in addition to coal and ports.
A May 2019 analysis by Scroll found that the same Adani group grew dramatically between 2014 and 2019 despite relatively low profitability and at a time when other infrastructure companies were liquidating assets.
Adani Group was “significantly overextended”, according to Credit Sights, an arm of credit rating agency Fitch Group, due to aggressive investment in several businesses. In the worst-case scenario, Credit Sights predicts the Adani group could become indebted and eventually collapse.
After hitting a 5% cycle higher at ‘470 on Thursday, shares of Delhi Tv (NDTV) hit a high of ‘440 early in the morning. The price of the open offer of 294 dinars per share made by Adani Group to acquire an additional 26% stake in NDTV is significantly lower than the current market price. After Adani Group’s offer to buy this company, its price has increased by 16 percent in the last six days.
India’s first private 24-hour news network and independent news broadcaster known as NDTV. 76% of respondents in a survey by Oxford University and the Reuters Center for the Study of Journalism said they trusted the information provided by NDTV.
Adani Group acquires Vishvapradhan Commerce Private Limited (VCPL) in its entirety. Radhika Roi Prannoi Roi (RRPR) Pvt Ltd, which controlled 29.18% of NDTV Ltd, was funded by warrants held by VCPL. The Adani Group then converted the options into equity and used this indirect interest to undertake an open offer under SEBI norms to acquire an additional 26% stake. The offer is oversubscribed by 31% and runs from November 22 to December 5, 2022.
NDTV founders and promoters Radhika and Prannoi Roy, who held a combined 32.26% stake, resigned from their positions as directors of RRPR Holdings on Tuesday. Through its subsidiary VCPL, the Adani Group has been fighting for the appointment of its directors to the board of NDTV after taking control of RRPR. As the shareholders support their decision, be it on the appointment of directors or auditors or on salary issues, the Adani Group has a controlling stake in the management of the company.
Learn more about Adani acquiring NDTV for scope expansion
Gautam Adani’s company is now the sole shareholder of NDTV with a 37.44% stake. By the end of November, it had acquired 29.18% of NDTV and 8.26% of the company’s shares. AMG Television Media Limited, Adani’s new company, earlier in March bought a minority stake (reportedly 49%) in digital news provider Quadrillion.
Adani Group, India’s third largest with a market value of $260 billion, is involved in everything from coal to transportation and sustainable resources. Its chairman Gautam Adani is richer than Jeff Bezos, chairman of Amazon, who has a combined worth of $120.3 billion. Adani’s wealth is $135.3 billion. Adani is the first and only Indian to be listed among the top three billionaires in the world, and is seen by many as “close” to the current national leadership. It would be wiser to say that Adani has properly aligned its firm’s expansion with the government’s growth aspirations, rather than claiming to be “linked to the government”.
Concerns over the concentration of media ownership are fueling Adani’s purchase of NDTV as it could compromise the channel’s editorial independence, tone and content. The NDTV acquisition comes as India’s ranking on Reporters Without Borders’ Freedom Index, based in Paris, fell to 150 out of 180 countries this year, its lowest ever.
The aforementioned impressions were refuted by Gautam Adani, who claims that the acquisition is a “responsibility” and not a “business opportunity” and that he wants the network to have a “global footprint”. NDTV’s problems, which began during the economic crisis, persist. It was supposed to buy $44 million from such a company run by Reliance a decade ago to restructure past liabilities. Now, the owners of NDTV are claiming that the deal was hostile and happened “without discussion, permission or notice”. They tried to prevent the transfer of shares.
With the broadcast arrangement, Adani is aggressively looking to close the gap with its rival, Reliance Group. One of India’s largest media companies, Network18, is owned by the Reliance Group, a $220 billion conglomerate with interests ranging from retail to manufacturing. In May 2014, the owners and promoters of Routes, Raghav Bahl and Ritu Kapoor, sold part of their ownership to Reliance Industries.
Adani and Ambani have intensified their commercial operations in India in recent years, particularly in industries including energy, ports, airports, fashion and online grocery shopping.
Adani operates seven airports in India and a second runway at Mumbai Airport. Currently, 20% of the country’s air traffic is handled by its infrastructure. All the six airports managed by the Authority of India that were up for sale and located in Lucknow, Ajmer, Guwahati, Gujarat, Thiruvananthapuram and Mangaluru have been awarded 50-year concession. In addition, this company bought most of the airport terminals of GVK Airports, and will also build the Navi Mumbai airport. Adani Group, a major monopoly in renewable energy and seaports, is aiming to buy a stake in Indian Railways after privatisation.
Adani Group bought a significant minority stake in Cleartrip, the Flipkart-owned ticketing website, a year ago after realizing that its consumer-facing online world was negligible. In the next three to six months, the company plans to unveil its long-awaited super-app, developed by an in-house start-up. Customers in Adani’s port network will be able to access its business via smartphone looking to invest in taxi fleets at terminal locations.
Adani also got the go-ahead to redevelop Mumbai’s Dharavi district, India’s largest slum, with a 50 billion rupee ($612 million) bid. Surprisingly, DLF, the real estate developer, offered $245 million and Adani’s bid was more than double that.
There are several dangers associated with the consolidation of economic power in the hands of a select few. Although Adani-rise Ambani did explore and innovate to grow its investor base, reduce its debt and prioritize profitability over expansion.
Adani Group plans to invest Rs 1000 crore in Karnataka
Karan Gautam Adani, chairman of Adani Ports & SEZ Limited and son of Gautam Adani, said on Wednesday that his father’s business will invest around Rs. 1 lakh crore in Karnataka over the next seven years as it looks to expand its footprint across several industries.
Adani has invested over 20,000 crores in Karnataka as of this writing. Speaking on the subject, Karan Gautam Adani said that the business group operates in various industries in the state, including transport, logistics or digital, as well as cement, electricity, city pipe gas and edible oil.
At the opening ceremony of the three-day Invest Karnataka 2022′-Global Investors Meet, Adani said, “The Government of Karnataka’s alignment with our country’s goal of becoming a global digital powerhouse has led to the state’s remarkable success. The fact that India and your country are on an upward economic trajectory is well illustrated by the $65 billion in IT exports, or about one-third of our total.
When I compiled all the places where we would invest and expand in the state of Karnataka, Adani said, “We will be talking about 1 lakh investment over the next 7 years. He also said that Adani Group, the world’s largest solar energy supplier, will increase its investment in Karnataka’s solar sector.
He claims that the company has a proven capability to produce over 7 million metric tonnes of cement at four plants in Karnataka. It would work to increase its presence in this region and would also strive to do so.
The CEO of Adani Airport Holdings, which runs the Mangaluru International Airport and is part of the Adani Group, announced that “we will build that airport as well.” He noted that the coastal location of Mangaluru in Karnataka is where Adani Wilmar is growing. He noted that Wilmar is growing in Mangaluru, a port area in Karnataka.
Edited by Prakriti Arora
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