Adani’s $2.5 billion share sale is significant days after the route

Adani's $2.5 billion share sale is significant days after the route
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NEW DELHI, Jan 29 (Reuters) – Gautam Adani faced a torrid day on Monday, overshadowed by a $48 billion drop in the Indian billionaire’s stock on the second day of bidding for a $2.5 billion stake sale in his flagship company sparked by a U.S. short-seller report.

The Adani Group, headed by Asia’s richest man, saw seven listed companies Sharp falls In their values ​​after the Hindenburg Research report last week flagging concerns About high debt levels and use of tax havens.

Adani Group issued the details response Late Sunday, said it complied with all local laws and made the necessary regulatory disclosures. He called the report baseless and said it was considering taking action against Hindenburg.

For 60 year olds AdaniThe stock market slump has been a dramatic blow for a school dropout who in recent years had become the world’s third-richest person, before slipping to seventh on Forbes’ list last week.

Sale of secondary shares of Adani Enterprises (ADEL.NS) Friday opened to retail and institutional investors, but saw just 1% subscription as the company’s stock fell 11% below the minimum offering price.

Adani Group said in a statement to Reuters on Saturday that the sale remained in plan On the planned issue price, even sources said bankers of the country’s largest secondary share sale are considering extending the deadline beyond January 31, or revising the price as the share price falls.

“It’s important for the Adani group to ensure the sale of shares — if they stick to the price and don’t cut it, and the stock doesn’t bounce back, nobody will be interested in applying,” said Ambarish Baliga, a Mumbai-based market analyst who works with various Advised the family office.

“Monday’s trade will be critical.”

In a separate statement on Sunday, Adani Group Chief Financial Officer Jugesinder Singh said it is focused on the stake sale and is confident it will go through. He also said its anchor investors have shown faith and invested.

‘free fall’

Some Adani Group stocks have risen more than 1,500% in the past three years amid aggressive expansion in ports, power generation, airports and mining businesses.

Adani Enterprises set a floor price of Rs 3,112 per share and a cap of Rs 3,276 for selling secondary shares – up from their close of Rs 2,761.45 on Friday.

Arun Kejriwal, founder of Kejriwal Research and Investments, said investors can wait till the last day of share sale to see if there is a change in the price band.

“I expect that the free fall seen on Friday may slow down but it may be difficult to get back to a level before this fall,” he added.

Indian regulations state that the share offer must receive a minimum of 90% subscription and if not, the issuer must refund the entire amount.

Maybank Securities and Abu Dhabi Investment Authority are among the investors that have bid. anchor part of the problem.

On Saturday, index provider MSCI said it was seeking feedback from market participants on Adani and monitoring factors that “may affect the eligibility of those relevant securities” in the MSCI indices.

The Adani Group has at least six companies in the MSCI India index, with a cumulative weight of 4.31%.

Reporting by Aditya Kalra, Ira Dugal, Jayashree P Upadhyay and Chris Thomas; Edited by Alexander Smith

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