India's Adani firms lose $65bn in value

Most Adani Group shares fell sharply on Monday as the Indian conglomerate's rebuttal of a U.S. short-seller's criticism failed to pacify investors, deepening a market rout that has now led to losses of $65 billion in the group's stock values.

Led by Asia's richest man Gautam Adani, the Indian group has locked horns with Hindenburg Research and on Sunday hit back at the short-seller's report of last week that flagged concerns about its debt levels and the use of tax havens.

Adani said it complied with all local laws and had made the necessary regulatory disclosures. Adani Transmission, Adani Total Gas, Adani Green Energy, Adani Power and Adani Wilmar fell between 5% and 20% on Monday.

Flagship Adani Enterprises, which is facing a crucial test this week with a follow-on share offering, swung between gains and losses before settling 4.8% higher. It stayed well below the offer price of the issue, which if successful will be largest such share offering ever in India.

Adani Enterprises' $2.5 billion secondary share sale closed its second day amid weak investor sentiment. The stock closed at 2,892.85 rupees, 7% below the 3,112 rupees lower end of the offer price band. The upper band is 3,276 rupees.

Data from stock exchanges on Monday showed Adani has now received bids for 1.4 million shares, or just over 3%, of the 45.5 million shares on offer. The deal closes on Tuesday.

Foreign and domestic institutional investors, as well as mutual funds, have made no bids so far, according to the data.