Adani's $2.5 bn FPO faces critical final day amid Hindenburg turmoil

Adani is seeking to execute the landmark share sale just as it refutes allegations by Hindenburg that the Indian conglomerate used a web of companies in tax havens to inflate revenue and stock prices

Filipe Pacheco & Abhishek Vishnoi | Bloomberg
Adani Group

Adani Group

Tuesday marks a critical day for Asia’s richest man Gautam Adani as his flagship firm closes books on a 200-billion rupee ($2.5 billion) share sale amidst the turmoil triggered by short-seller Hindenburg Research.
Shares of Adani Enterprises Ltd. have plunged about 7% below the floor price set for the follow-on equity sale owing to a broad three-day selloff that’s erased more than $68 billion of market value from Adani Group companies. Overall subscription for the offer, India’s largest follow-on equity sale, stood at just 3% as of end Monday.
That’s caused some analysts following the share sale to be skeptical about whether there will be enough demand under the current terms. Adani though will be hoping that the funding from Abu Dhabi’s International Holding Co. helps restore trust in his ports-to-cement business and lures buyers on the last day. IHC, which is controlled by a key member of the emirate’s royal family

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First Published: Jan 31 2023 | 9:27 AM IST

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