Adani Group Companies In The Red Following Plans To Raise ₹21,000 Cr

Two Adani Group companies are set to raise a total of ₹21,000 crore for the first time after the group suffered a major blow dealt by US short-seller Hindenburg Research. Shares of both firms slumped in early trade.

What Happened: Adani Enterprises is set to raise ₹12,500 crore while Adani Transmission plans to raise ₹8,500 crore by placing shares or other securities with institutional investors or via other methods, the firms said in exchange filings.

Meanwhile, renewables player Adani Green postponed a board meeting to decide on a capital raise to May 24.

The move comes four months after Hindenburg accused businessman Gautam Adani of serious financial wrongdoing, including stock manipulation and the use of offshore shell companies in tax havens like Mauritius, the United Arab Emirates, and the Caribbean. the research firm also flagged the conglomerate’s high debt levels as a concern.

Adani Group companies have suffered major routs in the stock market since the Hindenburg report even though the coal-to-airports conglomerate has categorically denied all allegations.

See Also: Tata Power Shares Continue Recovery: Buy, Sell, Or Hold?

Adani Enterprises also scrapped plans in February for a ₹20,000 crore follow-on public offering amid the drop-off in the share prices of its listed businesses.

The Securities and Exchange Board of India (SEBI) is also conducting an investigation into the allegations against the group.

Price Action: Adani Enterprises’ stock was trading 3.50% lower at 1,895.90, while shares of Adani Transmission plunged 3.05% to trade at ₹857.80 as markets opened for business on Monday.

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Posted In: EquitiesMarketsadani enterprisesadani green energyAdani GroupAdani TransmissionGautam Adani
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