Adani Enterprises lost more than 19% on Friday, sliding below the 3,276 rupees ($52.74) level at which anchor investors were allotted shares in the follow-on equity sale. Some units like Adani Green Energy Ltd. and Adani Total Gas plunged by the daily 20% limit, adding to a US$12 billion selloff in group companies on Wednesday. Volumes in these stocks were at least triple their three-month average.
The selloff in Gautam Adani’s corporate empire accelerated on Friday, erasing more than US$51 billion ($66.91 billion) of market value in less than two sessions as Asia’s richest man struggles to contain the fallout from a scathing report by US short-seller Hindenburg Research.
The rout is piling pressure on the Indian tycoon as it erodes his net worth and threatens to sour investor sentiment toward the US$2.5 billion share sale by his flagship firm Adani Enterprises Ltd. Losses accelerated even after the Adani Group disputed Hindenburg’s allegations in a Thursday call with bondholders and pledged to release a detailed rebuttal on Friday.
