Mumbai: A $2.5 billion share sale by Adani Enterprises remains on schedule at the planned issue price despite an adverse report by US-based investment research firm Hindenburg Research Research.
“There is no change in either the schedule or the issue price. All our stakeholders including bankers and investors have full faith in the FPO (Follow on Public Offer). We are extremely confident about the success of the FPO,” an Adani Group statement said.
However, Reuters reported quoting sources that bankers were considering changes due to a market rout in Adani Group’s shares last week since the Hindenburg report stated that engaged in a ‘brazen stock manipulation and accounting fraud scheme’ over decades.
Shares of 7 listed companies of Adani Group, controlled by one of the world’s richest men Gautam Adani, have tanked resulting in a combined loss of $48 billion in market value over the last three days.
On Day 1 of retail bidding on Friday, the FPO attracted around 1% of its targeted number of subscribers, raising doubts over whether the company will be able to go ahead with the issue.
Bankers involved with FPO were considering extending the sale or cutting the issue price, three people familiar with the matter told Reuters.
Adani Group has categorically denied all allegations made by Hindenburg.
Calling the report ‘misconceived and baseless’, the company said on Saturday that it has informed the stock exchanges and provided necessary clarifications.
The Adani Group has said it was considering taking legal action against Hindenburg.