Adani share price: Adani companies suffer losses of $65 billion amid U.S. short-seller battle escalates.
- Adani continues to suffer losses in the stock market
- Stocks drop as the company tries to calm investor worries
- Adani the flagship’s shares sale was a success with 3% of the participants – according to data
- Hindenburg states Adani Rebuttal was not able to answer key questions
The news that the company has been criticized for Most Adani Group shares fell dramatically on Monday after the Indian company’s defense of an U.S. short-seller’s remark failed to soothe investors, further escalating the market turmoil that has resulted in the loss of $65 billion to the value of its stock.
Achieved by Asia’s most wealthy man Gautam Adani, Asia’s richest man and headed by Asia’s richest man Gautam Adani, the Indian group has fought in a dispute with Hindenburg Research and on Sunday attacked the report from the short-sellers last week , which raised the concern regarding the company’s debt level and its usage of tax-free zones.
Adani stated that the company was compliant with local laws and completed the required regulatory disclosures.
Adani share price
https://groww.in/stocks/adani-enterprises-ltd
Adani Transmission (ADAI.NS), Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS), Adani Power (ADAN.NS) and Adani Wilmar (ADAW.NS) fell between 5 and 20% on Monday.
Its flagship Adani Enterprises (ADEL.NS) It is now facing the test of its life this week as it prepares to launch an offer to buy shares that follows, it fluctuated between losses and gains before finally settling 4.8 percent higher. It was just below the price for the issue which , if it succeeds, will be most significant share offering of this kind ever in India.
Adani Enterprises’ $2.5 billion secondary share sale ended the second day on a low investor sentiment. The stock was trading at 2,892.85 rupees, which is 7 percent below the lower limit of 3,112 rupees of the price band for offer. The upper end of the band is 3,276 rupees.
Stock exchange data on Monday indicated Adani has been receiving bids in the amount of 1.4 million shares which is just over three percent from the 45.5 million shares offered. The transaction is scheduled to close on Tuesday.
Institutional investors from both the US and foreign and mutual funds have made no bids as per the information.
“Retail involvement is expected to experience some gaps, with current prices of the market still lagging behind the offer price , and the sentiment being impacted because of Hindenburg. Hindenburg scandal,” said Hemang Jani who is an Equity strategist for Motilal Oswal Financial Services.
“While it is possible to run the possibility that the sale of shares does not happen It is vital today to examine how institutional investors will participate.”
Abu Dhabi conglomerate International Holding Company (IHC.AD) announced that on Monday it will put up 1.4 billion dirhams ($381.17 million) in the sale.
ON SCHEDULE
Adani Group told Reuters in an announcement this morning that its sale was in line at the expected price for the issue, even though sources indicated that the bankers who were involved in the largest secondary sale of shares were looking at an extension of the timeframe beyond January. 31 or altering the price in response to the decline in the price per share.
Indian regulations stipulate that the offer must be backed by a minimum subscribership of 90% and in the event that it doesn’t, the issuer has to pay the full amount. Maybank Securities and Abu Dhabi Investment Authority are among those who have bid on the anchor part of the offering.
Maybank has stated in a press release “there are no economic implications” in the event that the Adani service was entirely funded with client funds.
The state-run insurance giant Life Insurance Corporation (LIC) (LIFI.NS) said to Reuters that on Monday that it was reviewing Adani’s response to Hindenburg’s report , and will hold talks with Hindenburg’s management within the next few days.
LIC has taken 5 percent of the anchor portion of $734 million. It has an 4.23 percent stake in the main Adani company, while its other investments include the 9.14 percent share of Adani Ports in addition to 5.96 percent of Adani Total Gas.
“Since that we’re a major investor , we are entitled to ask the right questions,” LIC Managing Director Raj Kumar said.
DEBT, DE-LEVERAGING
U.S. dollar-denominated bonds offered through Adani Ports and Special Economic Zone have continued to fall over the course of an additional week, with the bond due to mature in August 2027 falling five cents, to 73.03 cents it was the lowest price in the past six months since June. Other bonds that are dollar-denominated of the company were trading less.
Indices provider MSCI has announced that it wanted opinions from market participants regarding Adani and was monitoring aspects that “may influence the admissibility of the relevant securities” that are included in MSCI indexes.
In its statement this Sunday Adani stressed its relationship with international and local banks and access to a variety of structures and sources of funding and structures. It also listed U.S. banks Citigroup (C.N) and JPMorgan Chase & Co (JPM.N) in addition to other lenders, including BNP Paribas (BNPP.PA), Credit Suisse (CSGN.S), Deutsche Bank (DBKGn.DE), Barclays (BARC.L) and Standard Chartered (STAN.L).
The collapse of the stock market has been a major setback for 60-year old Adani. The school dropout’s remarkable rise came with gains of more than 1,500% in his group stocks over the course of three years, which made Adani the third-richest man prior to his slide to eighth place according to the Forbes list on Monday.
In response to Adani’s argument, Hindenburg said the company’s “response generally was in agreement with our findings, but did not address our most pressing concerns”.
Hindenburg In its annual report, Hindenburg noted that Adani companies were carrying “substantial credit” in addition to the fact that stocks of seven Adani listed companies carry an average of 85% negative due to “sky-high prices”.
Adani’s response said that over the last decade the group’s companies have “consistently removed”.
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