Adani Enterprises tick up while group affiliates continue plunge
Shares of Adani Enterprises rose 10% after seeing sharp-losses in the previous sessions as its Chief Financial Officer voiced confidence in its follow-on public offering that is slated to close on Jan. 31.
The stock is is still down more than 20% in the first month of the year.
Adani Group’s CFO says ‘confident’ on secondary share sale
Adani Group’s chief financial officer Jugeshinder Singh said on Monday that he is confident Adani Enterprises‘ follow-on public offering will be fully subscribed.
The $2.5 billion secondary share sales were overshadowed by a rout of roughly $48 billion as the conglomerate’s affiliates stock prices plunged for a second consecutive session after short seller firm Hindenburg accused the group to be “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”
Singh said in an interview with CNBC-TV18, an affiliate of CNBC, that the value of Adani Enterprises has not changed “simply because” of share price volatility, adding it instead lies in its “ability to incubate new businesses.”
He added the Hindenburg’s report is “simply a lie,” and that the timing of the report was “malicious.”
The Adani Group published a lengthy response of over 400 pages to Hindenburg’s report over the weekend, saying that it will exercise its rights to “pursue remedies” to safeguard its stakeholders “before all appropriate authorities.”
Hindenburg on Monday morning called the group’s response “bloated” and claimed it “ignores every key allegation” against the conglomerate that it raised.
— Jihye Lee
Week ahead: China PMI release, Federal Reserve meeting
A batch of economic data will be released this week in the Asia Pacific, as the U.S. Federal Reserve kicks off its two-day FOMC meeting off on Tuesday. The central bank will announce its interest rate decision on Wednesday when the meeting concludes.
China’s National Bureau of Statistics releases its Purchasing Managers’…
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