Goldman Sachs Shares Continue To Zoom Despite Taking A ₹7,500 Crore Hit After Northvolt Files For Bankruptcy

Goldman Sachs is one of America's and the world's most renowned financial institutions, with a reputation and credibility beyond oceans and seas.

Goldman Sachs Takes A Haircut

The company recently took a major hit as the Swedish EV battery maker Northvolt filed for bankruptcy. The company CEO also stepped from the post, after the company filed for chapter 11.

In this major development, Goldman Sachs will be writing off a monumental amount of nearly USD 900 million. This amount to Rs 7,500 crore, as per current exchange rates.

The Fall From Promise

The famed financial behemoth's USD 896 million exposure to the Stockholm-based EV battery maker made it the second largest shareholder in the company.

These losses and the cataclysmic results fly in the face of the predictions and anticipations. Earlier this year, the Goldman Funds told investors its Northvolt stake was worth 4.29 times what the fund had paid for it.

In addition, the company had also claimed that this would increase to six times by 2025.

The company, that showed much promise faltered, especially after BMW canned a mega deal in June, this year.

Goldman Sachs Shares In Green

Meanwhile, the performance of Goldman Sacha at the equity markets continued to shine. As the company shares rose significantly, the company share value surged by 1.14 per cent or USD 6.78 in the past five trading sessions.

In the past month of trade, the surge is even bigger and broader. In a month, Goldman Sachs shares rocketed by 17.59 per cent.

The current value of the shares stands at USD 602.78 per share.

When we look at the share of revenue of investment banks, Goldman Sachs holds 7.3 per cent of the global market share. This list is topped by JP Morgan, who holds a share of 9.2 per cent. The top 5 companies on the list are all American.