Shares in India’s Adani Enterprises rose as much as 9.5% on Monday but those of several other group companies plunged for the third straight day, extending their losses after a U.S. short-seller’s report that criticised the group.
Adani group has locked horns with U.S.-based Hindenburg Research and on Sunday rebutted its report that flagged concerns about debt levels and the use of tax havens. Adani said it complies with all local laws and had made the necessary regulatory disclosures.
The report led to a $48 billion wipe-out in seven listed companies of the Adani group last week.
Hindenburg, in response, said Adani’s “response largely confirmed our findings and ignored our key questions.”
On Monday, Adani Enterprises was trading at 2,962 rupees in early trade, paring some of its initial gains, as its critical $2.5 billion secondary share sale entered its second day.
That’s below the price band for the share sale – Adani has set a floor price of 3,112 rupees per share and a cap of 3,276 rupees. On Friday, the first day of the offer, the issue was subscribed 1% amid a broader fall in shares.
Other Adani stocks remained under pressure. Adani Transmission, Adani Total Gas and Adani Green Energy all fell more than 15% each.
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