Adani Transmission shares hit 52-week low after flagship firm calls off FPO

Shares of Adani Transmission slipped to their 52-week low a day after flagship firm Adani Enterprises called off its Rs 20,000 crore follow-on public offer (FPO) and said money will be returned to investors. Adani Transmission stock crashed 10 per cent intraday to Rs 1,557.25 in early trade against the previous close of Rs 1730.25 on BSE. 

The stock opened with a loss of 10% on BSE today. Adani Transmission shares are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has lost 22.71 percent in a year and fallen 39.91 percent since the beginning of this year. 

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Total 0.71 lakh shares changed hands amounting to a turnover of Rs 11.12 crore on BSE. Market cap of the firm fell to Rs 1.74 lakh crore. The large-cap stock hit a 52-week high of Rs 4238.55 on September 16, 2022. 

Adani Enterprises on Wednesday announced withdrawal of its Rs 20,000-crore follow-on public offer (FPO) amid current market volatility.  

"Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction," said Adani Enterprises in a stock exchange filing.   

Adani Enterprises stock ended 28.5% lower at Rs 2,128.70 on Wednesday. Adani Enterprises sold shares in a price band of Rs 3,112-Rs 3,276. Shares of Adani Enterprises are down over 49% from their 52-week high. The stock is down over 37% in just one week. 

The crash in Adani Enterprises in the previous session came after Swiss lender Credit Suisse’s private banking arm assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai Ltd. It had previously offered a lending value of about 75% for the Adani Ports notes, the Bloomberg report added.

The report also said that Credit Suisse's private bank has stopped accepting bonds of Gautam Adani's group of companies as collateral for margin loans to its private banking clients.

In late January, a report by Hindenburg Research alleged accounting frauds, stock manipulations and money laundering by the Adani Group.

The Group called Hindenburg report as maliciously mischievous and unresearched, which, it said, adversely affected the Adani Group, its shareholders and investors. But Billionaire investor William Ackman in a tweet said he found short-seller Hindenburg Research's report on Adani Group "highly credible and extremely well researched."

Adani Group had said that the timing of the Hindenburg report's publication clearly betrays a brazen, mala fide intention to undermine the group's reputation with the principal objective of damaging the follow-on public offering from Adani Enterprises, which is the biggest FPO ever in India.

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