CNA – Adani Enterprises shelved a plan to raise as much as INR10 billion (USD122 million), Bloomberg News reported yesterday.
The flagship firm of beleaguered Indian billionaire Gautam Adani’s business empire had initially planned the public note issuance for last month, and was working with Edelweiss Financial Services, AK Capital, JM Financial and Trust Capital.
But activity has now stopped, the Bloomberg report said, citing people familiar with the matter.
Adani Enterprises called off its USD2.5 billion share sale in a dramatic reversal on Wednesday, after a rout sparked by a scathing report by United States short-seller Hindenburg Research wiped billions more off the value of the tycoon’s stocks.
The Indian markets regulator is already investigating the matter, including the crash in the company’s shares, any irregularities in the now-shelved share sale and any possible price manipulation, media reported earlier this week.
A spokesperson for Adani Group did not immediately respond to request for comment.
Edelweiss, AK Capital also did not respond to requests for comment, while JM Financial and Trust Capital could not be reached.
A report by Hindenburg Research last week alleged improper use of offshore tax havens and stock manipulation by the Adani Group.
It also raised concerns about high debt and the valuations of seven listed Adani companies.
