The Indian conglomerate Adani Enterprises saw its stock price plunge by 20% on Friday following a critical report from an American short seller. This precipitated a $48 billion rout across the company’s listed firms, raising questions about how investors will respond to their record-breaking secondary offering of $2.45 billion.
Adani is one of India’s largest conglomerates and has been expanding rapidly in recent years, with investments ranging from ports to power plants and airports. The group has also become increasingly prominent in global markets, having recently acquired Australian mining giant GVK Hancock for over $3 billion dollars as well as launching the world’s largest solar farm project in Gujarat last year.
However, this latest setback could have serious implications for Adani’s future plans if investor confidence is shaken by the stock rout caused by Friday’s report. Investors are now likely to be more cautious when considering whether or not they should back the company’s upcoming share sale – which would be its biggest ever – amid fears that it may not generate sufficient returns given current market conditions.
Read more at Reuters