Adani group shares rise after Adani Enterprises fund raise bid, Mauritius minister’s rebuttal to Hindenburg allegations

Adani Hindenburg saga: After Mauritius Financial Services Minister Mahen Kumar Seeruttun refuting the allegations labelled by the Hindenburg Research report about the shell companies operating in the island nation, Adani groups shares witnessed sharp upside movement during morning deals on Thursday.

All 10 Adani group share price surged in the opening bell whereas Adani Enterprises share price gained maximum buy adding to the tune of 4 per cent within few minutes of market opening. Adani Green Energy, Adani Power, Adani Transmission and NDTV followed with near 2 per cent gains in early morning deals on Thursday. Adani Ports share price ascended over one per cent while Adani Wilmar share price gained around 1.50 per cent.

On Wednesday, Mauritius Financial Services Minister Mahen Kumar Seeruttun refuted all allegations labelled by the US-based short seller Hindenburg Research on shell companies operating from the island nation. The financial minister of Mauritius said in the parliament that Hindenburg Research's allegations of the presence of 'shell' companies in the Island nation are 'false and baseless' and that Mauritius was in compliance with OECD-mandated tax rules.

While replying to a question of a Mauritius lawmaker, the financial services minister said, "At the outset, I wish to inform the House that the allegations of the presence of shell companies in Mauritius are false and baseless," adding, "According to the law, shell companies are not allowed in Mauritius."

The statement by the Mauritius minister has come just one day before the Hindenburg-Adani issue hearing in the Supreme Court of India. The apex court, which had appointed an expert committee to look into regulatory issues, is likely to take up capital market regulator SEBI's plea for a six-month extension in timelines to probe allegations against the Adani group.

Adani Enterprises fund raise bid

On Wednesday, Adani Enterprises announced that the company's board will hold a meeting on May 13 to approve the proposal of raising of funds. This comes months after the company withdrew its ₹20,000-crore follow-on public offer (FPO) in February amid the Hindenburg row which wiped out more than $140 billion of the port-to power conglomerate's market value.

Adani Enterprises informed about the development citing, “The board will consider raising funds by way of issuance equity shares or other eligible securities through a private placement, a qualified institutions placement or a preferential issue.”