At least two of India’s biggest business families participated in Adani Enterprises’ $2.5 billion share sale, according to people familiar with the matter, as a sign of solidarity with Gautam Adani as the tycoon fights short seller allegations Which dropped the value of his empire. ,
Giants Sajjan Jindal And Sunil Mittal said the people who subscribed to the follow-up offer in a last-minute push to help Adani’s flagship firm complete the sale, who asked not to make the information public.
The people said the investments come from their personal funds and do not include listed businesses such as JSW Steel Ltd and Bharti Airtel Ltd. According to an acquaintance, Jindal has invested around $30 million. It is not clear for how much Mittal bought it.
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Representatives of Jindal’s JSW and Mittal’s Bharti declined to comment on the founders’ possible investment in the Adani share sale. Representatives of the Adani Group had no immediate comment. The Indian newspaper Business Standard reported the involvement of Jindal and Mittal.
The offering was India’s largest follow-on share sale, and was fully subscribed on the last day due to increased demand from institutional investors and high net worth individuals. Interest from retail investors Who? The billionaire Adani was hoping to attract to diversify the firm’s investor base – was particularly vulnerable.
Short seller attack shows risks of Adani empire going global
The involvement of some of India’s biggest corporate names, along with some potentially rival business interests, Hindenburg Research’s allegations against Adani are seen domestically as a massive threat to the country’s economy.
invasion of india
Hindenburg alleged that the Adani group used a network of firms in tax havens to inflate revenues and stock prices. The Adani Group termed the short seller’s allegations as an “attack on India, the independence, integrity and quality of Indian institutions, and India’s growth story and ambition”.
The port-to-power conglomerate, which has been on a breakneck expansion and diversification spree, has lost more than $70 billion in its market value since Hindenburg published the report last week. The sell-off pushed Adani Enterprises stock below the floor price of the follow-on offer. The share sale was then spearheaded by Abu Dhabi’s International Holding Company, an existing Adani shareholder, which invested $400 million in the offering.
Adani Group has called Hindenburg’s report “fake”, threatened legal action and said it was “a calculated securities fraud” on Sunday in a 413-page rebuttal, which the short seller downplayed all of its key allegations. and was “obsessed with nationalism”. ,
The text of this story is published from a wire agency feed without any modification.
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