Adani: Gautam Adani stocks decline as fundraising plans spur dilution concerns - Times of India
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MUMBAI: Shares of Indian billionaire Gautam Adani ’s group declined on Monday after boards of two firms approved proposals to raise as much as $2.6 billion, with market watchers flagging concerns about potential equity dilution. Adani Enterprises Ltd , the incubator for new group businesses, slid 4.4% — the most intraday since May 3. The firm got a nod to raise as much as 125 billion rupees ($1.5 billion) via a Qualified Institutional Placement or other modes, according to an exchange filing Saturday. Adani Transmission Ltd can seek up to 85 billion rupees via similar methods, the utility said separately. The stock, which slumped last week amid global index provider MSCI Inc.’s move to exclude it from an India gauge, lost 4.6% in early Mumbai trading. “The approved fundraising is causing dilution concerns,” said Deepak Jasani, head of retail research at HDFC Securities Ltd in Mumbai, adding that the MSCI decision has also hurt sentiment for group stocks in general. The fu