Some other group stocks, including Adani Power ,
Adani Green and Adani Total Gas , were down
5%-10%.
Adani Wilmar was down 5%, but Adani Ports and
Special Economic Zone rose 0.5% at open.
(Reporting by M. Sriram and Chris Thomas; Editing by Aditya
Kalra and Muralikumar Anantharaman)
MUMBAI, Jan 31 (Reuters) - India's Adani Enterprises climbed 2% in early trade on Tuesday, the last day for
its $2.5 billion secondary share sale, with all eyes on whether
the company can secure enough backing for the offering after a
U.S. short-seller's scathing attack.
Billionaire Gautam Adani's group firms have lost $65 billion
in stock market value since Hindenburg Research's Jan. 24 report
flagged concerns about the group's high debt levels and its
suspected improper use of tax havens. Adani has called the
report baseless.
A successful completion of the share sale will show
investors still believe in the group's prospects and that it can
weather the unprecedented short-seller challenge and its
aftermath.
Adani Enterprises stock opened at 2,932 rupees, still below
the lower end of the share sale's price band of 3,112 rupees.
The issue was subscribed 3% by Monday. The anchor portion of
the issue - that accounted for 30% - closed last week with
investments from investors such as Abu Dhabi Investment
Authority.
Abu Dhabi conglomerate International Holding Company said
late on Monday it will invest $400 million in the issue, but the
bid has not yet been reflected in the data on Indian exchanges.
The share sale needs at least 90% subscription to go
through.
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