What is the future of Adani Group?
What is the future of Adani Group? Here are a few facts to know about the Adani Group: Almost 83% of Adani's wealth has been built in the last 3 years. Most of this is reflected due to the inflation of their stock price. How does this work? Think about it this way: if you own 75% equity in your company (valued 100Rs), then you have ₹ 75. But, suddenly if the stock price goes up to ₹ 300, you are now worth ₹ 225. This is precisely what is happening with Adani Wealth. Most of it has come due to bloating of the stock prices Now the allegations are, that by maintaining a "low float" the stock price has been manipulated. How this works: owners own close to 75% of stocks, create a bunch of shell firms, and make them buy more stocks, so the total de-facto ownership goes up quite significantly. Therefore, SEBI has a rule that promoters can't have more than 75% ownership. Since there are very few stocks (supply) and if the demand go...