AgenciesNEW DELHI: Ahead of the launch of the Rs 20,000 crore mega follow-on public offer (FPO) of , Adani Group shares lost up to 5% in Wednesday's trade after Hindenburg Research said it holds short positions in companies owned by billionaire Gautam Adani.
All 10 Adani Group stocks were in the red this morning with dropping the most at 5% to hit day's low at Rs 723. Other top losers in the pack included , and Ambuja Cement - all of them lost 4% each.
Adani Group's flagship Adani Enterprises lost up to 2.5% to day's low at Rs 3,357.10.
"We hold short positions in Adani Group Companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities," said Hindenburg, a US-based investment research firm with a focus on activist short-selling. ALSO READ
The Hindenburg report claimed that the seven key listed companies of Adani Group are "85%+ overvalued even if you ignore our investigation and take the companies’ financials at face value."
The release of the report comes just ahead of the Adani Enterprises FPO which opens on Friday and aims to raise Rs 20,000 crore to fund the Group's ambitious capex plans in green hydrogen, airports and greenfield expressway. Over Rs 4,000 crore of the funds raised from the FPO would be used to repay debt for Adani Airport Holdings, Adani Road Transport, and Mundra Solar.
Earlier in August 2022, CreditSights, a fixed income research firm owned by financial services firm Fitch Group, had flagged concerns over the Group's debt which had risen to Rs 2.2 trillion in FY22-end.
Shares of Adani Enterprises surged 125% in 2022, while other group companies, including power and gas units, rose over 100%.
Despite the meteoric rise in Adani Group shares over the last few years, most of the counters hardly find any analyst coverage.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
All 10 Adani Group stocks were in the red this morning with dropping the most at 5% to hit day's low at Rs 723. Other top losers in the pack included , and Ambuja Cement - all of them lost 4% each.
Adani Group's flagship Adani Enterprises lost up to 2.5% to day's low at Rs 3,357.10.
"We hold short positions in Adani Group Companies through US-traded bonds and non-Indian-traded derivatives, along with other non-Indian-traded reference securities," said Hindenburg, a US-based investment research firm with a focus on activist short-selling. ALSO READ
The Hindenburg report claimed that the seven key listed companies of Adani Group are "85%+ overvalued even if you ignore our investigation and take the companies’ financials at face value."
The release of the report comes just ahead of the Adani Enterprises FPO which opens on Friday and aims to raise Rs 20,000 crore to fund the Group's ambitious capex plans in green hydrogen, airports and greenfield expressway. Over Rs 4,000 crore of the funds raised from the FPO would be used to repay debt for Adani Airport Holdings, Adani Road Transport, and Mundra Solar.
Earlier in August 2022, CreditSights, a fixed income research firm owned by financial services firm Fitch Group, had flagged concerns over the Group's debt which had risen to Rs 2.2 trillion in FY22-end.
Shares of Adani Enterprises surged 125% in 2022, while other group companies, including power and gas units, rose over 100%.
Despite the meteoric rise in Adani Group shares over the last few years, most of the counters hardly find any analyst coverage.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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