Business

Adani Group stocks and bonds extend sell-off

Shares of most of the listed companies of the Adani Group fell on Monday despite the Indian group’s protracted response to reports of short sellers that wiped $50 billion off market value. subsidiaries last week.

Most of the stocks controlled by Adani sold off, adding to losses from last week. Adani Green Energy fell more than 18 percent, while Adani Transmission and Adani Total Gas both reduced the maximum 20 percent allowed by the Bombay Stock Exchange and the National Stock Exchange of India.

Adani Enterprises rose about 2% on Monday to Rs 2,816 ($34.54) in Mumbai, while two group-controlled cement companies also posted moderate gains.

Many bonds are issued by Adani Corporation entities also fell on Monday, with Adani Ports dollar bonds maturing in 2027 dropping 7 cents to $0.72 per dollar. Another bond issued by Adani Transmission and maturing in 2026 fell three cents to about $0.83 per dollar.

Adani Enterprises’ initial profit fell short of taking back shares above Rs 3,112, the lowest price in the price range for its next $2.4 billion share offering that ends on Tuesday. The company said the sale would go ahead as planned despite concerns that it might have trouble attracting investors.

Those concerns stem from a report on short sellers published by New York-based Hindenburg Research on Wednesday, shortly before the new stock offering was launched, alleging Adani was involved “Security fraud and accounting fraud”.

By the end of Friday’s trading session, the report was delete about 20 percentor more than $50 billion, from the value of the listed companies of the Adani Group.

In its response, released on Sunday and 54 pages long with about 350 addendums, the billionaire-owned industry conglomerate Gautam Adani said the Hindenburg report had “caused an unprecedented and severe adverse impact on our investors”.

The allegations “are not merely an unwarranted attack on any particular company but a calculated attack on India, the independence, integrity and quality of its organisations. India as well as India’s growth and ambition story,” it said.

The group also dismissed concerns about its highly leveraged growth model, saying that “the leverage ratios of the companies in the Adani Portfolio continue to be healthy and in line with industry standards across sectors.” respective area”.

In a follow-up note on Monday following the Adani Group’s response, Hindenburg said the company has “attempted to combine the rapid rise and wealth of chairman Gautam Adani with the success of India itself.” “.

The short seller added “that the core allegations in our report – focusing on multiple suspicious transactions with offshore entities – are completely unresolved.”

The offering is intended to expand the list of shareholders of Adani’s vast industrial group, the majority of which are now owned by related organizations and funds based in Mauritius.

According to data from the Bombay Stock Exchange, the next offering of 45.5 million shares of Adani Enterprises had attracted more than 600,000 shares by the end of the morning local time.

Much of the demand for shares in India comes late in the offering period, usually on the last day.



Source by [author_name]

news7h

News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button