Gautam Adani and his company informed Reuters on Saturday that a $2.5 billion share sale by India’s Adani Enterprises (ADEL.NS) is still on track and will go place at the planned issue price, despite bankers reportedly mulling adjustments because of a share market crash for the company.
After the shares of Gautam Adani fell following a report from a U.S. short seller, the deal’s bankers were considering extending the offer or lowering the issue price, three people with knowledge of the situation told Reuters on Saturday.
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“There has been no change to either the schedule or the issue price,” according to a statement from Adani Group. The company further stated, “The FPO is fully trusted by all of our stakeholders, including our bankers and investors (Follow on Public Offer). We are very optimistic about the FPO’s success.”
Since Hindenburg Research raised concerns about the conglomerate’s use of tax havens and debt levels on Tuesday, seven listed firms owned by one of the richest men in the world, Gautam Adani, have collectively lost $48 billion in market value.
The Adani Group referred to the report as unfounded and stated that it was thinking about pursuing legal action against Hindenburg. “The extension of the Tuesday subscription deadline by four days was one of the options the bankers were reportedly exploring,” according to sources.
Adani Enterprises, the group’s flagship company, fell 20% in value on Friday, bringing it 11% below the secondary sale’s minimum offer price.
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The offer only attracted about 1% of the subscribers it had hoped to on Friday, the first day of retail bidding, raising doubts about its viability.
