Comments by "Rutvik" (@rutvikrs) on "Adani back in headlines as Supreme Court wades in where the markets reward u0026 punish, and how" video.

@karthik7486 you do realise that they will make back the money right? What LIC and SBI have suffered are nominal losses. Think of it as a home loan. Adani gave his shares as a guarantee to secure a loan just as one pledges the site/property papers to the bank. Hindenburg report has revealed that the "site" was overvalued by 85%. None of the Adani companies in question have defaulted on loan repayment as they have proven business models and tangible assets. It is not dependent on the earnings of the company. LIC and SBI are not day-trading Adani stocks.
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Other Sovereign institutional investors also missed it. It's just a valuation game. Adani isn't going to collapse over it.
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@pp_01123 which laws specifically? The only thing he will be probably guilty of is going above and beyond the promoter stakes. If SEBI cracked the whip on it every single listed company is going to fall under the charge. Even the Tatas.
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@karthik7486 minor correction and we move to two factors in this: Correction: no entity be it Adani companies, LIC or SBI have lost money only valuation. There is no question of bailout. We have not spent a single paise of tax in this whole episode. LIC and SBI must ask for higher interest to reflect the increased risk exposure and Adani must be made to pay. 1. I think you are perturbed by the involvement of government run financial institutions in Adani. If you want growth like we saw in Japan, Korea and China we need to take this kind of risk. The collapse of the overlevaraged NTT and Daewoo did not lead to total collapse of these countries, did it? The charge is India has shied away from such investment. But it is going to be accompanied with risk. 2. In fact American market is also doing it with FAANG. Look at the operating profits of companies and their valuation. This is what is known as stakeholder capitalism where valuation matters more and the companies are given time to come up with a working business case. We are also forced to play the game. Zomato, Swiggy and every other startup is overvalued. The only difference is that it is the sovereign wealth funds instead of the government that is propping up their valuation. It's a worse situation when a foreign entity decides to pull the plug.
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 @narajnandan2181 but MS and Apple are older companies. Amazon, Meta, Netflix and even Tesla don't have the kind of revenues or viable business models to justify the valuation.
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@eshaan1110 they are not the same. Adani notional loss is akin to the loss in valuation of a pledged property that was security to a loan. 2G is a pre accounted revenue source which was service national debt but was curiously written off and the allocation was done for free. That is the reason it created the furore it did.
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I think it's just hot gas. In five years, Adani will be back on the horse. The issue isn't a "free and fair" system, it is stakeholder capitlaism. if that was the case that Western markets are free and fair, FAANG should have never seen the light of the day given their pathetic earnings after decades into the earning phase.
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It should have stayed with Ambanis
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It's good news that the NSE listing comes after the correction Adanis have a 20 year track record of repayment which has generated huge revenues for the erstwhile state banks and other debt services.
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Why not Zomato?
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That isn't a viable argument. Assuming the same details of your example, the 85% crash happened within the 10% float which exists in the market. This is just a repeat of Anti Dhirubhai Ambani sentiment. Adani might end up having a much lower valuation and pay more interest but he isn't going down. In 5 years we will all laugh at this.
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@karthik7486 people have been told a certain narrative that makes it look like Adani is the only one doing this. Wait till they find out that every listed company is engaged in stock price manipulation including the Tatas through Mauritius based shell companies. Even better when they realise FAANG is built on it to this day. The main issue is people have not understood that we have moved to stakeholder capitalism.
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Wow just wow. When has the SEBI ever been diligent on promoter holding? You are suggesting it as if this is a recent change.
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@sunkidd9150 ok let's test that hypothesis. Are FAANG and Tesla overvalued purely by revenue and numbers? What keeps their value up despite bad numbers perhaps with the exception of Apple?
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That isn't how things work 😂
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@narajnandan2181 1. Tatas have done the same thing Adani has decades ago, aka restraining market float. I am not spreading any misinformation. Go down the rabbit hole of companies associated with every major Indian group in Mauritius. It's a rabbit hole that goes beyond tax saving. After all why do Tatas need such entities in Mauritius? 2. I am not ascribing criminality or malintent when these companies do it. It's a protective mechanism to save themselves from short sellers and dumping by institutional sellers. Reliance was subject to this as well in the mid 90's. Tatas and reliance are just further in history than Adanis. 3. We should consider removing the promoter limit but that may never happen as the executive and general public sentiment in India is dead against creating a class of ultra rich like the Zaibatsus, Chaebol and Chinese cliques. 4. There is a reason I ask every person I meet to learn the difference between shareholder capitalism which was in vogue in the 90's and stakeholder capitalism which is today's practice. Forget hiring CEOs to deliver valuation, Companies are built to deliver valuation not revenues. What happens when valuation is attacked? Amongst FAANG and Tesla, only Apple and Alphabet are sitting on cash reserves with the latter joining the league recently, else none of these companies and our much touted startup ecosystem have any revenue of note.
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