Adani stocks lose up to 10%; two counters hit lower circuits

NEW DELHI: Even after the Rs 20,000 crore-follow-on public offer (FPO) of Adani Enterprises sailed through on Tuesday, all 10 stocks belonging to billionaire Gautam Adani's vast empire were reeling under the impact of the Hindenburg report today.

While Adani Total Gas was locked in the 10% lower circuit at Rs 1901.65, Adani Power also hit its 5% lower limit at Rs 212.75.

The conglomerate's flagship Adani Enterprises was trading 2.7% lower at Rs 2,895.05. Adani Ports was 1.5% lower at Rs 603.55 while Adani Transmission also lost 3% to Rs 1,720.

In the meantime, nearly all dollar bonds issued by Adani companies extended gains into the second day, Bloomberg data showed.

With strong support from non-institutional investors and qualified institutional buyers (QIB), Adani Enterprises’ FPO had sailed through with 112% subscription. Retail investors, however, stayed away from the FPO.

Ever since Hindenburg released a report making several allegations against the Adani Group, the two sides have been engaged in a war of words. In between, Adani stocks have lost around one-fourth of Rs 5 lakh crore of their market value.

In a 413-page strong rebuttal to the 88 questions asked by the New York-based short-seller, the Adani Group raised questions on the motivation behind the report and said it is a case of unethical short selling by a foreign entity by publishing a report to manipulate and depress the price of stock, and create a false market.

This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India, Adani said.

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