Shares of Adani group companies continued their downward trend on Wednesday, falling by up to 10 per cent on the BSE in Wednesday’s intra-day trade in an otherwise firm market.
In past five trading days, the stock price of Adani group firms have tanked up to 51 per cent after Hindenburg alleged the conglomerate used a web of companies in tax havens to inflate revenue and stock prices. Adani has denied the short seller’s allegations.
Shares of Adani Total Gas were locked at lower circuit for the fourth straight day, down 10 per cent at Rs 1,901.65 today. In past five trading days, the stock slipped 51 per cent from a level of Rs 3,885 on January 24.
Adani Power too was frozen at the 5 per cent lower circuit at Rs 212.75, falling up to 23 per cent in last five days. Adani Green Energy, Adani Enterprises and Adani Transmission were down 3 per cent each. In comparison, the S&P BSE Sensex was up 0.71 per cent at 59,971 at 10:06 am.
Meanwhile, the Adani group on Tuesday pulled off the Rs 20,000-crore follow-on public offering (FPO) for its flagship company, Adani Enterprises (AEL), despite the storm created by US short seller and investment research firm Hindenburg Research through a barrage of allegations against the conglomerate.
Even though AEL’s share price continued to languish below its issue price, the FPO managed to garner 1.12 times subscription, attracting bids worth over Rs 16,000 crore. Over 60 per cent of these bids came from high networth individuals (HNIs). The quota reserved for HNIs was subscribed 3.3 times.
The institutional investor portion garnered 1.26 times subscription with bids worth Rs 5,276 crore. Abu Dhabi-based International Holding Company (IHC) had committed to investing about Rs 3,200 crore in the issue. The retail portion was subscribed just 12 per cent, and saw bids to the tune of Rs 900 crore.
