discontinued stock sale
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The group’s flagship company – Adani Enterprises (ADEL.NS) – plunged 10% after opening higher on Thursday. The other companies in the group – Adani Ports and Special Economic Zone (APSE.NS), Adani Total Gas (ADAG.NS), Adani Green Energy (ADNA.NS) and Adani Transmission (ADAI.NS) – fell 10% each , while Adani Power (ADAN.NS) and Adani Wilmar (ADAW.NS) fell 5% each.
Adani slipped in the world’s richest ranking to 16th place, according to Forbes’ list, from third last week.
In New Delhi, opposition lawmakers submitted notices to the Indian parliament demanding a discussion on the US short seller’s report. Congress party lawmaker Manish Tewari said he would demand a parliamentary joint committee investigation into the matter, Reuters partner ANI reported.
ADANI VS HINDENBURG
Hindenburg’s report last week alleged misuse of offshore tax havens and stock manipulation by the Adani Group. It also raised concerns about the high level of debt and valuations of seven listed Adani companies.
The Adani Group denied the charges, saying the short seller’s share manipulation allegation had “no basis” and stemmed from ignorance of Indian law. The group has always made the necessary regulatory disclosures, he added.
Earlier this week, Adani Group said it had the full support of investors, but investor confidence has crumbled in recent days.
As stocks plunged after the Hindenburg report, Adani managed to secure subscriptions to sell shares on Tuesday even though the stock price was below the issue’s offering price. But on Wednesday, stocks plunged again.
In a late-night announcement on Wednesday, Adani said he was withdrawing the stock sale because “the company’s stock price fluctuated during the day.” Given these extraordinary circumstances, the company’s board felt that continuing the show would not be morally acceptable. to correct.”
Early Thursday, Adani said in a video address that “the interest of my investors is paramount and everything is secondary. Therefore, to protect investors from potential losses, we have withdrawn” the sale of shares.
Reporting by Chris Thomas, Aditya Kalra and Nallur Sethuraman in Bengaluru; Editing by Muralikumar Anantharaman
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