Shares of Adani group companies such as Adani Enterprises, Adani Power, Adani Ports & SEZ and Adani Green Energy fell up to 5 per cent in Tuesday’s trade amid reports the group has been in talks since last week with Abu Dhabi’s International Holding Corp (IHC) to infuse capital into Adani Enterprises or other group entities.
Quoting sources Economic Times reported that top group representatives have returned to Abu Dhabi on Monday for further discussions. The news has come weeks after the Adani Enterprises withdrew its Rs 20,000 crore follow on public offer amid steep fall in the group shares following dozens of allegations of wrongdoing by Hindenburg Research.
As per the ET report, the quantum of investments has not yet been finalised, but sources told ET the group was looking at a $1-$1.5 billion infusion of ‘confidence capital.’
At 11 am, shares of Adani Enterprises were trading 2.19 per cent lower at Rs 1,680. Adani Ports, which was trading lower in early trade, recovered and was trading at Rs 560.25, up 1.27 per cent. Adani Power hit its 5 per cent lower circuit limit at Rs 148.30. Adani Transmission fell 5 per cent to Rs 1,070.55. Adani Green Energy also declined 5 per cent to Rs 653.40.
Among other group stocks such as Adani Total Gas (down 5 per cent), Adani Wilmar (down 5 per cent), Ambuja Cements (down 2.5 per cent) and ACC (down 0.3 per cent) also declined.
Senior representatives of the group, led by chairman Gautam Adani, Group CFO Jugeshinder Singh and other executives have been in the Middle East for the past week, ET reported. Meetings have also been held with Abu Dhabi Investment Authority (ADIA) and other sovereign wealth funds (SWF) of Abu Dhabi, the report added.
Meanwhile, Sebi is probing the allegations made by US-based short seller Hindenburg Research against the Adani Group and the market activity before and after the publication of the report, the market regulator told the Supreme Court on Monday. During a hearing by the apex court on volatility in Adani stocks, Sebi said the matter was in the early stages of examination, so it may not be appropriate to list details about the ongoing proceedings at this stage.
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