Adani News Live Updates: Adani Ent, Adani Ports zoom, others still bleed

The Accusation:

Hindenburg’s research report dated January 24, said, “we reveal the findings of our 2-year investigation, presenting evidence that the ₹17.8 trillion ($218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”

However, Adani’s top management had denied Hindenburg’s accusations, calling the research report of the latter a “maliciously mischievous, unresearched report”. The management has also called Hindenburg’s report with the principal objective of damaging Adani’s ₹20,000 crore FPO, which is one of the biggest follow-on public offers in India. Also, Adani has given detailed clarity over the accusations by Hindenburg.

Why Adani’s FPO saw dull demand in start?

The lackluster demand came after a US-based firm Hindenburg Research accused Adani of stock manipulation and fraud schemes. This led to overwrought selling in Adani stocks on Friday which also dragged the broader market.

Last week, on Friday, the majority of Adani Group stocks hit their lower circuits, which meant that there existed multiple sellers but no buyers. Adani Transmission, Adani Green Energy, and Adani Total Gas closed at 20% lower circuits each on January 27th. While Adani Power and Adani Wilmar also took a beating to get locked at 5% lower circuits each. Further, Adani Ports also struggled and tumbled by over 16% at the end of the day.

Meanwhile, Adani’s flagship company, Adani Enterprises, which launched its FPO on Friday, plummeted by at least 20% before closing at ₹2,762.15 apiece on the BSE.

FPO’s Day 1! 

On the first day of the issue, Adani Enterprises recorded bidding of merely 4,70,160 equity shares on a cumulative basis against the offered size of 4,55,06,791 equity shares, as per BSE data.