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Dow Jones Newswires: Adani stocks extend losses after $2.5 billion share sale

Adani Group companies extended their string of stock market losses Wednesday, a day after winning backing for a $2.5 billion share sale at the Indian conglomerate’s flagship company.

Adani Enterprises Ltd.

was 5.7% lower in midday trade, taking its losses since the release of a critical report by U.S. short seller Hindenburg Research last week to 23%. Adani Total Gas Ltd.

fell by a newly set daily limit of 10%, while Adani Green Energy Ltd.

fell 3.6% and Adani Power Ltd.

declined 5.0%. Another three companies linked to the group fell between 3.2% and 5.7%.

The declines came a day after Adani won enough bids to pull off a $2.5 billion stock sale by Adani Enterprises. The deal ended slightly oversubscribed with the backing of institutional investors, with many of the bids coming in during the offering’s final hours. Retail investors took up just 12% of shares they were offered, while Adani Enterprises employees subscribed for just over half of their offered shares.

The company is scheduled to price the deal today.

The offering went ahead under the specter of the Hindenburg report, which alleged that Adani manipulated prices of its shares over the years through the use of offshore shell companies, among others. The conglomerate has denied the allegations.

Read: Gautam Adani’s billionaire ranking drops as short seller report wipes $72 billion off Adani market value

Write to Yi Wei Wong at

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