Stock prices for the Adani Group finished mixed. All of the group’s listed equities, with the exception of Adani Enterprises and cement arms share price, closed in the negative.
The market capitalization of Adani fell by more than 1.53 lakh crore on Monday.
The performance comes after the group supported by Gautam Adani published a more than 400-page response to Hindenburg’s accusations, and the US-based company also retaliated. Adani’s 20,000 crore follow-on public offer (FPO) gained traction as a result of robust demand from regular investors.
The FPO will end on January 31st and is being sold at a premium price range of $3,112 and $3,276 per FPO equity share.
The majority of Adani Group shares continued to tumble sharply on Monday as investors remained unconvinced by the Indian conglomerate’s response to criticism from a U.S. short-seller, pushing the firms’ combined stock market losses to $66 billion over the course of three days.
Flagship Adani Enterprises, which this week will be put to the test with a follow-on share offering, increased 4%, but this was much below the offer price and below earlier gains of as high as 10%.
The company Adani, run by Asia’s richest man Gautam Adani, has been at odds with Hindenburg Research and responded on Sunday to a report from the short-sellers that raised issues with the company’s debt levels and usage of tax havens. Adani asserted that it has made the required regulatory disclosures and conforms with all local regulations.
Even though sources claimed bankers of the nation’s largest secondary share sale were considering extending the timeline beyond January 31 or adjusting the price due to the decline in its share price, Adani Group told Reuters in a statement on Saturday that the sale remains on schedule at the planned issue price.
According to Indian legislation, the share offering must receive a minimum of 90% subscription; otherwise, the issuer is required to repay the full cost. Among the investors who submitted bids for the anchor portion of the offering were Maybank Securities and the Abu Dhabi Investment Authority.
There is no financial consequence, according to Maybank, as the subscription to Adani’s offer was fully paid by client funds.