People walk past an electronic display showing news about the Adani Group outside the Bombay Stock Exchange building in Mumbai on January 27, 2023. Photo Credit: AP
Shares of India’s Adani Enterprises rose 9.5% on January 30, but several other group companies declined for a third straight day, extending their losses after a US short-seller report criticizing the group gave.
Adani competes with US-based Hindenburg Research on Jan 29 denied its report It expressed concern about the level of debt and the use of tax havens. Adani said it complies with all local laws and has made necessary regulatory disclosures.
The report led to the wiping out of $48 billion in seven listed companies of the Adani group last week.
Hindenburg, in responseAdani’s “response largely confirmed our findings and ignored our key questions.”
On Monday, Adani Enterprises was trading at ₹2,962 in early trade, paring some of its early gains, as its significant $2.5 billion secondary share sale entered its second day.
The shares are below the price band for sale – Adani has set a floor price of Rs 3,112 per share and a ceiling of Rs 3,276. On Friday, the first day of the offer, the issue was subscribed 1% amid a broad fall in the shares.
Other shares of Adani were under pressure. Adani Transmission, Adani Total Gas and Adani Green Energy all declined over 15%.