Stock Market Disruption – Adani Company

History of the Company

Adani Company is believed to be an Indian company that owns and operates under most companies. This company is believed to be more active and the wealthiest in Indian countries. Apart from owning the series of companies found within the Indian community, Adani company is set to be the headquarters of Ahmedabad. This company was put into action in 1988 when it was confirmed that it could carry out many activities in the global world. Remember, since the company is operating other companies and several businesses in the Indian community, this company is therefore believed to be the most influential company (Deo, 2019). Many resources within the Adani Company are utilized by the controlling individuals who control the performance of other businesses or the companies that this leading company owns. As a result of the growth and expansion of the company. Adani has set up more businesses and, more so, companies within the Indian community and in the global world.

Major players (Investors, Management)

In every company setting, the leading team forms the management team. In the Adani Company, some individuals control all the activities carried out in the company. This forms the primary management team that runs and operates the company anytime. According to the number of achievements that the Adani Company made, a good management team is leading the company. More so, prominent investors are found within the company. The Adani company controls the activities of other companies that work under it. This means that there is the primary source of capital that the company uses to expand itself and, more so, be able to maintain the activities carried out by other companies that work under it. This information brings in the idea of sponsors who funds the company and who forms the leading fundamental investors in Adani Company. Adani company owners also act as the leading investors in the company setting (Perona, 2021). They benefit more from the activities they set and carry out within the company.

History of the stock

Adani Company has one of the shared visions the working individuals have set. As it has been highlighted, this company majors itself in the activities that lead to the establishment of many companies and other businesses in the Indian community and more so across the global world. This company majors in building more infrastructure and the assets the country takes to grow. As stated in the introduction, this company started its activities in 1988. At this moment, the company had a small amount of money that could be used to raise more companies and businesses. This made the company have fewer assets worldwide and more so in the Indian communities (Muralidharan, 2023). As the company grew every moment, the company acquired more sponsors who ensured a continuous flow of capital. Therefore, this idea allowed the company to grow and establish more and more company ad businesses that operate under it. At present, Adani Company has got a large number of assets.

What happened?

During the establishment of more assents in the Adani Company, several individuals had the idea of funding the company at any given time. This means they wanted to enrol in the company and form part of the investors in the company system. Adani Company CEO rejected the idea of most of the sponsors wishing to sponsor the company at any given time. Although the company had a problem experiencing low capital, the CEO refused to give out permission to some of the sponsors who wanted to fund the Business (Ramanna, 2022). The main reason behind this is that the CEO feared that the Business could have been overtaken or other individuals could have owned the company because the company would not be able to pay the bank the money it rendered to them. This idea raised great fear in the manager and other individuals who sum up the management staff in the Adani Company.

Actions Taken

Because several individuals wanted to fund the company system, the CEO decided to pick a few from the great list. This was so because the company would at least be able to repay the amount rendered to them after a given period. Therefore, the company is run by the management team decided to pick a few individuals to fund the Business at any given time. This idea was necessary since the company would pay back the amount rendered to them at a given period. More so, Adani’s CEO decided that the rest individual would be involved in the company as the company grows. This is because when the company grows big, there will be several assets that the company will own at any given time (Acharya, 2018). These assets will ultimately form the primary source of income for the company. Therefore the company will be able to repay the amount of money rendered to them at any given time.

Outcomes

The fact that the CEO was able to engage a few sponsors at the early stages of the Adani Company development made it possible for the company to have capital that was used to set up more infrastructure in the Indian communities and more so across the global world. This allowed the company to own several assets, which earned much profit. As the company grew, there was the idea of the CEO also involving a large number of sponsors at any given time (Pradhan, 2016). This idea was also good since the company could fix more assets at any given time. This enabled the company to fulfil its primary vision of growing the countries. Because the company now had enough capital to run its activities at any given time, it could earn more and more capital. This is because the company had paid back the amount of money rendered to it at the beginning of the establishment period.

References

Acharya, S., John, V. S., & George, J. (2018). Prognostic Ability of Beta in Predicting Stock Returns in Asymmetrical Stock Market-Indian Context. Asian Journal of Research in Banking and Finance, 8(2), 28-35.

Deo, S., Singh, S. K., Raghuram, G., & Choudhari, S. (2019). Adani Wilmar Limited (AWL). Asian Case Research Journal, 13(01), 157-176.

Muralidharan, S. (2023). End of a roll: The curious rise and fall of Adani stocks. Frontline.

Perona, M., Cigolini, R., Adani, M., Biondi, R., Guzzetti, S., Jenna, R., … & Agellara, S. (2021). The integrated management of logistic chains in the white goods industry. Field research in Italy. International Journal of Production Economics, 69(2), 227-238.

Pradhan, S. K., & Kasilingam, R. (2016). Impact of Bonus Announcements on Share Price: Evidence from Bombay Stock Exchange. Pacific Business Review International, 6.

Ramanna, V., Dhanuka, A., Vasu, D., & Valluri, H. (2022). Adani Power Initial Public Offering. Available at SSRN 2003329.