Adani stocks open mixed as group issues response to Hindenburg claim
- The stock rebound, especially of Adani Enterprises, will be keenly tracked as it will determine the fate of the ₹20000 crore FPO, which struggles to gain momentum
Mumbai: Shares of Adani group companies opened mixed on the bourses early Monday after the group’s late-night response to US research company Hindenburg on its 88 queries
Adani Ports and Adani Enterprises, the two Nifty index stocks, gained 10% each in early morning trade. However, Adani Total Gas traded down 19.16% and Adani Green was down 15.57%. Out of ten listed stocks, four — Adani Enterprises , Adani Ports, ACC and Ambuja Cements --are traded in the derivatives segment.
The stocks churned a mixed performance as Hindenburg also put out its response to the Adani Group’s 413-point response.
The Hindenburg Research has responded to Adani Group's rebuttal to its allegations. Refuting Adani's 413-pages long response, Hindenburg has said that "fraud cannot be obfuscated by nationalism."
“Markets will be keenly tracking the stock performance amid the ongoing FPO,” said Hormuz Maloo, director, AFco Investments.
The stock rebound, especially of Adani Enterprises, will be keenly tracked as it will determine the fate of the ₹20000 crore FPO, which struggles to gain momentum amid a plunge in group company stocks that erased ₹4.4 trillion of investor wealth over two days. The FPO received bids for only 470,000 shares, or just 1% of the shares on offer, on Friday, the first day of the three-day share sale.
Rajesh Palviya, technical head of Axis Securities, said under normal framework if high volatility persists, the exchanges can increase the value at risk margin for cash shares and Span Margin for futures .
A rise in margin would mean reducing leverage for intraday traders. Say if the margin rises from 25% to 28%, leverage decreases to 3.6 times from four times.
At ₹3037.55, the Adani Enterprises stock traded below the FPO floor price of ₹3112.
“Key will be to see the recovery,” added Maloo.
The Hindenburg report on Wednesday created a rout in Adani Group shares which shed ₹4 trillion in market cap on allegations that the company had perpetrated stock price manipulation and accounting fraud. Adani Group termed the report findings maliciously mischievous and unresearched .
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