(Bloomberg) – U.S. dollar bonds of Adani Group companies tumbled rapidly on Monday after the Indian conglomerate’s rebuttal failed to assuage concerns following a scathing report last week. of the short-selling firm Hindenburg Research.
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Adani Ports & Special Economic Zone Ltd’s 2027 banknote. fell 7.1 cents per dollar to 72 cents in Hong Kong, hitting a new low after falling 11 cents last week, data compiled by Bloomberg showed. The sell-off in billionaire Gautam Adani’s conglomerate empire has wiped out more than $50 billion in stock market value as Asia’s richest man struggles to contain the fallout.
At least eight other Adani corporate bonds fell more than two cents against the dollar on Monday in volatile trading, as the value of the company’s debt fell hundreds of millions of dollars in less than a week. .
The Adani team published a 413-page rebuttal of Hindenburg’s fraud allegations on Sunday as its flagship firm sought to finalize a share sale. Hindenburg Research said its rebuttal did not specifically answer most of the questions it posed, and the team “largely confirmed or attempted to circumvent our findings”.
“US investors sold out on Friday and that influenced today’s price action,” said Kaveh Namazie, credit strategist at Australia & New Zealand Banking Group Ltd. public offering and whether there are any delays or price adjustments for the portion of the organization completed last week.
Shortened bonds
Hindenburg said last week that it had taken a short position in Adani’s companies through U.S.-traded bonds and derivatives that weren’t traded in India.
In Adani’s rebuttal published on Sunday, the group said that about 65 of the 88 questions had been resolved in their public disclosures, describing the short seller’s conduct as “nothing more than a criminal case.” calculated securities fraud in accordance with applicable law.” The Group reiterated that it will “exercise its rights to pursue remedies to protect the parties concerned from all appropriate authorities.”
The verbose response came during the final stock offering of Adani Enterprises, which received a total of 1% registrations for the institutional and retail portion on Friday.
While investors in India’s public offerings typically wait until the last day of an auction to place their bids, there are concerns that Hindenburg’s attack was aimed at the richest man in the land. water will make the person’s psyche worse. The sale to fixed investors, including the Abu Dhabi Investment Authority, is valued at the top of the range.
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