In a show of support for Gautam Adani as the billionaire battles charges from short-sellers that sent the value of his empire falling, at least two of India's most powerful business families took part in the $2.5 billion share sale of Adani Enterprises. In a last-minute effort that helped Adani's main company close the sale on Tuesday, tycoons Sajjan Jindal and Sunil Mittal subscribed to the follow-on offering. The investments are made with their own money and don't include the publicly traded companies they run, like JSW Steel Ltd. and Bharti Airtel Ltd., the sources claimed. Jindal has committed around $30 million. How much Mittal invested is unknown.
The sale, which was the largest follow-on share offering ever in India, was completely subscribed on the last day thanks to a spike in interest from institutional and high-net-worth buyers. Attack by Short Sellers Illustrates Adani Empire's Globalization Risks.
The participation of some of India's greatest corporate names—some with potentially competing economic interests—comes as the claims made against Adani by Hindenburg Research are perceived as posing a threat to the overall health of the nation's economy. The Adani group characterized the claims made by the short seller as an "attack on India, the independence, integrity, and excellence of Indian institutions, as well as the growth story and aspiration of India."
After that, current Adani shareholder Abu Dhabi's International Holding Co., which contributed $400 million to the offering, supported the share sale. Calling the Hindenburg report "fraudulent", Adani Group threatened legal action and called it "planned securities fraud" in a 413-page rebuttal on Sunday, in which short sellers said they had ignored all its key allegations and "confusion of nationalism".
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