Adani kicks off $2.45 billion share sale while under Short seller attack

Adani has set a floor price of Rs 3,112 ($38.22) and a ceiling of Rs 3,276 per share. India’ Adani Enterprises Ltd launched a $2.45 billion secondary share sale to retail investors on this  Friday. The Adani Group, which is among the richest in the world, experienced a sharp decline a few days ago. 

Adani Group companies lost $11 billion in market capitalization on Wednesday after New York based Hindenburg Research raised concerns in a report about debt levels and the use of tax havens. Adani Group dismissed  this report as baseless.

 The aim of Adani Enterprises is to use the share sale proceeds for capital expenditure and to pay debt.

Bidding for Adani Enterprises share sale for retail investors started on Friday and it  will end on 31st January.

Shares of Adani Enterprises fell nearly 6% to Rs 3,189.55 in early Mumbai trade on Friday, lowest since mid-October. Hindenburg said the main listed Adani group companies have “substantial debt” and put the group in a “secure financial position”, while “sky high valuations” boosted the share prices of the seven listed Adani companies to 85. 

 Adani Group has repeatedly downplayed its concerns over debt levels. It defended itself in a presentation on Thursday titled Myths of the Short Seller, saying that promoters – or key stakeholders – are in a high growth phase.

Indian shares fell more than 1 percent to a three month low on Friday, as banks continued to lead the market lower along with Adani Group companies in the wake of a short seller attack on conglomerate.

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