Adani Group's $2.5B share sale remains on schedule at the previously planned issue price, while bankers reportedly were expecting changes.
Shares of the Indian conglomerate, controlled by Asia's richest man and billionaire Gautam Adani, plunged following a report from U.S. short-seller Hindenburg Research accused the company of malpractice and fraud.
More:
- According
to Adani Group, all stakeholders, including bankers and investors,
"have full faith in the FPO" (Follow on Public Offer).
- The sale is being managed by Jefferies, India's SBI Capital Markets, and ICICI Securities, among others.
- The Hindenburg report examined Adani Group's use of entities in offshore tax havens.
- Adani called the report "baseless" and said it plans to take legal action against Hindenburg.
Zoom Out:
- On Wednesday, Hindenburg accused Adani of improper use of offshore tax havens.
- Seven of Adani's companies have lost $48B in market value since Hindenburg Research flagged concerns.
- Hindenburg Research, a forensic financial research firm, was founded in 2017 by Nathan Anderson with a mission to find corporate wrongdoings.
