Shares of Adani Group remained volatile on Monday, January 30, as war of words between the group and US-based Hindenburg Research continued over the weekend.
Adani Total Gas fell 20%, Adani Enterprises closed 4.21% higher, Adani Green Energy lost 20 percent, Adani Transmission was down 15%, Adani Ports was down 0.29%, Adani Power fell 5% and Adani Wilmar also declined 5%.
Late Sunday, Adani issued a 413-page response to Hindenburg Research's accusations.
The Adani Group said this was not just an unwarranted attack on one particular company but also a calculated attack on India, the independence, integrity, and quality of Indian institutions, as well as the country's growth story and ambition.
Further, the company said that the allegations in Hindenburg Research's January 24 report were nothing but a lie, and a malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive.
In an interview with CNBC-TV18 on Monday, Jugeshinder Singh, CFO of Adani Group, said that they were confident that when people have digested the published report, they will see that this was a “maliciously timed purposeful falsehood” released specifically to undermine the follow-on public offering (FPO).
Adani Enterprises' ₹20,000-crore follow-on public offer (FPO) opened last week to muted response. The company has fixed the price band at ₹3,112 to ₹3,276 per equity share for the proposed offer. On Day 2 on Monday, only 3% of the FPO was subscribed.
This was due to the fact that post the Hindenburg report, shares of Adani Enterprises fell below the FPO price.
The public issue opened for subscription on Friday, January 27, and will close on Tuesday, January 31. Over the weekend, Adani said the FPO will go as scheduled and there won't be any changes to the FPO price.
"We are extremely confident that from the institutional perspective we are there but there maybe some pull back in the retail side given that there's some price difference," said Singh.
On Friday, the stock closed at ₹2,768.50, 11 percent down than the lower limit, and 15 percent than the upper limit of the price band.
In response to Adani Group's 413-page clarifications, Hindenburg Research replied to the company and said that “fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised”.
Seven Adani companies on Monday lost ₹1.37 lakh crore in market cap (after adjusting the gains in m-cap of two companies).
|Scrip Name||Closing price on Jan 28 (in Rs)||Closing price on Jan 30 (in Rs)||Previous market cap as on January 28 (in ₹crore)||Market cap on January 30 (in ₹crore)||Difference in market cap (in ₹crore)|
|Adani Total Gas||2,928||2,342||319,152||255,278.00||-63,874.00|
|Adani Green Energy||1,486||1,189||231,816||185,484.00||-46,332.00|
|Adani Ports & SEZ||596.95||597||160,281||160,294.50||13.42|
On Friday, seven of Adani companies lost ₹3 lakh crore in market cap. Adani Total Gas lost ₹79,788 crore on Friday, followed by Adani Enterprises, which lost ₹68,343 crore, and Adani Green Energy that lost ₹57,876 crore.