Hindenburg effect: 7 Adani group stocks lose ₹86,000 cr in m-cap today

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Responding to Hindenburg’s report, Adani group has refuted the claims terming them “malicious, mala fide and brazen”, whose intention is to damage the group’s upcoming follow-on public offer. “The timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming follow-on public offering from Adani Enterprises, the biggest FPO ever in India,” says Jugeshinder Singh, group CFO, Adani group.

He said the investor community has always reposed faith in the Adani Group on the basis of detailed analysis and reports prepared by financial experts and leading national and international credit rating agencies. “Our informed and knowledgeable investors are not influenced by one-sided, motivated and unsubstantiated reports with vested interests.” 

Singh said the Adani Group holds a diverse portfolio of market-leading businesses managed by CEOs of the highest professional calibre and overseen by experts in various fields for several decades. “The group has always been in compliance with all laws, regardless of jurisdiction, and maintains the highest standards of corporate governance.”

It is notable that the report by Hindenburg came days ahead of Adani Enterprises’ ₹20,000 crore follow-on public issue, which will open on January 27 and close on January 31. The bidding by anchor investors will start on January 25, as per the company’s filing with the SEBI.  The FPO committee of the board of directors of the company has fixed the floor price for the issue at ₹3,112-3,276 per share, a discount of 13.5% at the lower end of January 18 closing price. The board also approved a discount of ₹64 per FPO equity share for retail individual investors. The conglomerate plans to use nearly ₹10,869 crore out of the ₹20,000 crore for funding capital expenditure requirements of its subsidiaries in relation to certain projects of the green hydrogen ecosystem, improvement works of certain existing airport facilities, and construction of greenfield expressway. Besides, it intends to utilise ₹4,165 crore for repayment of certain borrowings of the firm and its three arms – Adani Airport Holdings Ltd, Adani Road Transport Ltd and Mundra Solar Ltd. As of September 2022, Adani Enterprises had a total debt of around ₹40,000 crore.