Early trading sees an increase in Adani Enterprises shares, but other group stocks decline following a short-seller onslaught.

The price of Adani Power decreased 5% to Rs 235.65. At Rs 491.45, Adani Wilmar reached its 5% lower circuit limit. Adani Transmission experienced an 18% decline and reached a low of Rs 1,648.

On January 30, shares in India’s Adani Enterprises increased by as much as 9.5%, but those of numerous other group companies fell for a third day in a row, increasing their losses following a report by U.S. short-sellers that criticised the company.

While Adani Group CFO Jugeshinder Singh expressed confidence that the Rs 20,000 crore follow-on public offer (FPO by Adani Enterprises) will be successful and that his group was not looking to make any changes with respect to either price band or offer period, Adani Enterprises stated in a filing to the BSE that in the event that the offer price is lower than the allocation price for anchor investors, the difference will not be funded to anchor investors. On February 1, the FPO committee is expected to meet to approve the offer price and prospectus for the offer.

Stocks of the Adani Group have recently suffered as a result of a Hindenburg Research analysis. The group claims that the research firm plagiarised from company disclosures and did not conduct adequate research. Additionally, it said that they either conducted inadequate research or did so but misled the public.

Adani Enterprises, according to Singh, is not a typical corporation that trades based on value factors like earnings multiples. An incubator, that is. What it incubates is where its worth lies. Airports, ports, green hydrogen, data centres, Adani Wilmar, Adani Digital Labs, and mining companies are all incubated by Adani Enterprises. They are important enterprises. The amount of Adani Enterprises shares that one can purchase is what people are most interested in. When the businesses are demerged and investors end up owning an equal amount of shares based on ratios, then is when value will be created, according to Singh.

According to Singh, the share price is extremely sensitive to small-scale investors. However, while there may be a volatility concern for non-family offices, long-term institutional investors, and long-term strategic investors, it does not alter for them the value of Adani Enterprises.


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