The combined market value of Adani Group companies increased by more than $6 billion after India’s securities markets regulator dismissed some Hindenburg Research allegations https://t.co/rZaULAFbx6 ...

India regulator rejects US firm's fraud claims against Adani Group https://t.co/MoGii7FjAc ...

By Kashish Tandon (Reuters) - Adani Group stocks closed higher on Friday, a day after India's markets regulator dismissed parts of short-seller Hindenburg Research's stock manipulation allegations against billionaire Gautam Adani and his conglomerate, signalling a potential end to the group's regulatory troubles. The Securities and Exchange Board of India is still examining more than a dozen allegations that Adani Group and certain offshore funds broke securities rules, Reuters reported, citing sources. ...

India Regulators Clear Billionaire Gautam Adani Of Hindenburg Allegationshttps://t.co/lteeXLMT0s https://t.co/VzqsWEm1Ai ...

India’s securities market regulator clears the Adani Group and its billionaire founder Gautam Adani of some allegations of impropriety raised by the shortseller Hindenburg Research https://t.co/XGpC4JWcN3 ...

Core Insights - Dreamfolks Services has exited the lounge access business in India, which is expected to disrupt lounge access for credit card users of select banks, particularly affecting customers of smaller banks [1][8] - The company faced increasing competition and market changes, leading to the withdrawal of major lounge operators from its network [2][3] - Major clients like ICICI Bank, Axis Bank, and IDFC FIRST Bank have shifted to other platforms, contributing to Dreamfolks' decline [4][5] Company Overview - Dreamfolks previously acted as an intermediary between banks, credit card issuers, and airport lounge operators, facilitating access for millions of travelers [2] - The company has been under pressure from new competitors, including TFS and Adani Digital's LoungeOne [3] - The loss of key lounge operators and clients has significantly impacted Dreamfolks' business model [4][6] Market Dynamics - ICICI Bank and Axis Bank have partnered with LoungeOne, which operates across 16 airports, affecting Dreamfolks' customer base [4] - IDFC Bank has directed its debit card customers to use Elite Assist by TFS for lounge access, while credit card users have not received similar guidance [5] - Customers with super premium credit cards that include Priority Pass membership can still access lounges, but smaller banks may face challenges until new partnerships are established [7][8]

Core Viewpoint - Vedanta has emerged as the highest bidder to acquire Jaiprakash Associates Limited (JAL) under the corporate insolvency resolution process (CIRP), with a net present deal value of Rs 12,505 crore, surpassing the offer from Adani Group [1][7]. Group 1: Acquisition Details - Vedanta's proposed acquisition involves an upfront payment of Rs 3,800 crore and annual payments of Rs 2,500-3,000 crore over the next five years, potentially bringing the total acquisition cost to approximately Rs 17,000 crore [5][7]. - The financial creditors, forming the committee of creditors (CoC), have claimed unpaid dues amounting to Rs 57,185 crore, with the National Asset Reconstruction Company being the leading claimant after acquiring JAL's stressed loans from a consortium of lenders [5][7]. Group 2: Regulatory and Market Context - The Competition Commission of India (CCI) must approve Vedanta's acquisition proposal before the resolution plans can be sanctioned by the CoC [1][7]. - In a filing dated September 11, Vedanta stated that the proposed transaction is not expected to have any appreciable adverse effect on competition in India [7]. - The National Company Law Tribunal initiated insolvency proceedings against JAL in June of the previous year [2][7]. Group 3: Company Profile - JAL is an infrastructure and industrial company engaged in various sectors, including real estate, cement, hospitality, engineering, procurement, and construction contracting, with some group companies also involved in power, fertilizer, sports, and aviation [5][7]. Group 4: Credit Assessment - CreditSights, a Fitch Group firm, indicated that Vedanta's acquisition of JAL is credit negative due to a lack of strategic synergistic rationale [6][7].

Group 1: Oil Price Movements - Oil prices increased on Friday due to a Ukrainian drone attack that suspended loadings from Russia's Primorsk port, with Brent crude settling at $66.99 per barrel, up 0.93%, and U.S. West Texas Intermediate crude at $62.69, up 0.51% [1][2] - The gains in oil prices were limited by concerns regarding U.S. demand, as a revised jobs report indicated that the U.S. economy created 911,000 fewer jobs than previously estimated [3] Group 2: Economic Indicators - The U.S. consumer price index rose by 0.4% in August, marking the largest gain since January, following a 0.2% increase in July, which has implications for inflation and economic conditions [4] - The International Energy Agency projected that global oil supply would increase more rapidly than expected due to planned output increases by OPEC+ [5] Group 3: Supply Chain Dynamics - India's Adani Group has banned tankers sanctioned by Western countries from entering its ports, which could potentially limit Russian oil supplies, as India is the largest buyer of Russian seaborne oil [6]

Core Viewpoint - The Adani Group is making a second attempt to enter the semiconductor sector by establishing a joint LCD display fabrication plant in India, following the collapse of its previous $10 billion chip manufacturing proposal with Tower Semiconductor [1][2][10]. Group 1: Adani Group's Strategic Moves - The Adani Group had previously announced a $10 billion plan to set up a chip manufacturing facility in Maharashtra, which was later paused due to concerns over commercial viability and strategic alignment [2][10]. - The group is now focusing on establishing an LCD display fab, with discussions reportedly gaining momentum after Prime Minister Modi's visit to Japan [3][10]. - The Maharashtra government has provided a 'comfort letter' to the Adani Group, indicating readiness to offer land for data centers or semiconductor-related projects, contingent on finding a suitable partner [4][10]. Group 2: Market Context and Opportunities - The Ministry of Electronics and Information Technology (MeitY) has prioritized establishing display fabs under the proposed Semicon 2.0 scheme to boost domestic manufacturing and reduce imports [4][10]. - India currently consumes nearly 9% of the global display panel market, and establishing display fabs could unlock nearly 70% of display value within India, significantly reducing import dependency [4][10]. - Analysts suggest that display fabs present lower entry barriers and quicker returns compared to chip fabs, aligning well with Adani's infrastructure strengths [5][10]. Group 3: Partnerships and Technological Expertise - The Adani Group is in discussions with Sharp and Panasonic, both of which have shifted their focus to niche, high-value B2B sectors, leveraging their unique technologies [5][11]. - Sharp is recognized for its Indium-Gallium-Zinc-Oxide (IGZO) technology and is investing in new technologies like nano LED and reflective displays, while Panasonic is a key player in the automotive display sector [7][11]. - The collaboration with Sharp and Panasonic is seen as a strategic move to enhance Adani's capabilities in high-growth electronics manufacturing [4][10].

Group 1 - Indian and foreign lenders have significantly increased their exposure to the Adani group, with Indian lenders' exposure rising over 50% to over ₹1.3 lakh crore and foreign banks' exposure increasing 16% to ₹71,744 crore [1][2] - Domestic lenders' share in the total debt has increased to over 50% from 40% last year, indicating growing confidence in the Adani group [1][4] - The group has been actively engaging Indian institutions, exemplified by Life Insurance Corporation's investment of ₹5,000 crore in non-convertible debentures issued by Adani Ports and Special Economic Zone [4] Group 2 - The Adani group is under investigation by US regulators for alleged fraud, which has led to an 11% decline in funding through US dollar bonds as the group avoids overseas public bond markets [2] - Despite the investigations, lenders are reassured by the group's robust cash flows, which exceed ₹60,000 crore, and its focus on creating long-term infrastructure assets [5][6] - The group plans to invest around $70 billion in green energy, with 80% of its recent capital expenditure directed towards expanding its green energy portfolio [5][6] Group 3 - Last financial year, the group's capital expenditure was close to $15 billion, with an indication of annual spending of $15-20 billion over the next five years [6] - Over 80% of the group's total EBITDA of approximately ₹90,000 crore is derived from its core infrastructure businesses, including energy and transport [6] - The energy companies in the Adani portfolio have secured long-term power purchase agreements, providing cash visibility for extended periods, such as a 40-year PPA signed by Adani Green Energy for a pumped hydro project [7]