Adani shares have plunged after the conglomerate shelved a $US2.5 billion share sale amid tens of billions in losses since last week’s short-seller attack.
Adani scraps share sale after fraud claims hit stock
The conglomerate of embattled Indian billionaire Gautam Adani will review its plans for raising capital after calling off a $US2.5 billion (($A3.5 billion) share sale following the loss of tens of billions of dollars in market value due to claims of fraud by a US-based short-selling firm.
Adani Enterprises cancelled the share sale late on Wednesday, citing “market volatility”.
Stocks in the coalmines to ports empire sank after Hindenburg Research, which has a track record of sending stock prices of its targets tumbling, accused the group of “brazen” stock market manipulation and accounting fraud, among other financial abuses.
The share sale was seen as a crucial test of investor confidence in Adani, whose net worth leapt 2000 per cent in recent years as share prices for his listed companies soared.