Adani stocks in focus as flagship entity’s share sale enters last day

Adani stocks in focus as flagship entity’s share sale enters last day

India’s Adani Enterprises shares rose on Tuesday, the last day for its $2.5 billion secondary share sale, with all eyes on whether the company can secure enough backing for the offering after a US short-seller’s scathing attack.

Billionaire Gautam Adani’s group stocks have sharply fallen after a January 24 report from Hindenburg Research which flagged concerns about high debt levels and the use of tax havens, with cumulative losses now at $65 billion.

For the latest headlines, follow our Google News channel online or via the app.

Adani has called the report baseless.

Adani Enterprises, the flagship firm, was trading 4 percent higher at 3,000 rupees, still below the lower end of the share sale’s price band of 3,112 rupees.

But other group stocks, including Adani Power, Adani Green and Adani Total Gas, were down 5 percent-10 percent, extending their falls after Adani’s 413-page response to Hindenburg’s allegations failed to boost investor confidence.

The share sale is critical for Adani, not just because it is India’s largest follow-on offering and will help cut debt, but also because its success will be seen as a stamp of confidence by investors at a time the tycoon faces one of his biggest business and reputational challenges of recent times.

An