Adani Enterprises Tumbles 30%; Other Group Companies Remain in Red
Moneylife Digital Team 01 February 2023
Stock prices of Adani group companies continue to crash, with its flagship Adani Enterprises Ltd tumbling over 30% to Rs2,065.05 on the BSE, while the 30-share Sensex was marginally up at 59,708.08 points. Just on Tuesday, the follow-on public offering (FPO) of Adani Enterprises was oversubscribed with help from non-institutional investors (NIIs) and qualified institutional buyers (QIBs). The price band was set at Rs3,112 - Rs3,276 per FPO equity share and a discount of Rs64 per share was being offered to retail individuals.
However, with the segment barely subscribed 0.12 times, retail investors appear to have ignored the FPO. 
Meanwhile, according to a Bloomberg report, Credit Suisse has stopped accepting bonds of Adani's group of companies as collateral for margin loans to its private banking clients. 
"The Swiss lender's private banking arm has assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai Ltd, according to people familiar with the matter, who asked not to be identified discussing private information. It had previously offered a lending value of about 75% for the Adani Ports notes, one of the people said," the report says.
Back home, while all Adani group companies ended Wednesday in red, three out of the nine companies hit lower circuits. These are: Adani Power Ltd, Adani Total Gas Ltd and Adani Wilmar Ltd. 
After hitting a day's low of Rs1,942, Adani Enterprises closed Wednesday 28.45% down at Rs2,128.70, while Adani Ports and Special Economic Zone Ltd ended the day 19.69% lower at Rs492.15 on the BSE.
Shares of Adani Power and Adani Wilmar closed 5% down at Rs212.75 and Rs443.60, respectively. Adani Total Gas ended the day 10% down at Rs1,901.65.
Adani Transmission Ltd and Adani Green Energy Ltd also saw red and closed the day 2.46% and 5.78% down at Rs1,730.25 and Rs1,153.35, respectively. 
Adani group's two other companies Ambuja Cements Ltd also fell 16.56% to close Wednesday at Rs334.60, while ACC Ltd ended 6.34% down at Rs1,844.40 on the BSE. 
The Rs20,000 crore FPO of Adani Enterprises was fully subscribed on Tuesday, the last day of the issue. The FPO received bids for 1.12 times for the 4.55 crore shares on offer. QIBs led by FIIs sought 1.26 times the shares offered to them as a category, NIIs bid for 3.32 times the stock reserved for them as a class.
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