Adani abandons $2.5 billion share sale in big blow to Indian tycoon - TRT World

Adani Group was moving with its bankers to refund the proceeds received by successful the secondary stock merchantability of Adani Enterprises. (Reuters Archive)

Gautam Adani's flagship firm has called disconnected its $2.5 cardinal stock merchantability successful a dramatic reversal arsenic a rout sparked by a US short-seller's criticisms wiped billions much disconnected the worth of the Indian tycoon's stocks. 

"Today the marketplace has been unprecedented, and our stock price has fluctuated implicit the people of the day. Given these extraordinary circumstances, the Company’s committee felt that going ahead with the contented volition not beryllium morally correct," Adani said connected Wednesday. 

"Our equilibrium expanse is precise steadfast with beardown cashflows and secure assets, and we person an impeccable way grounds of servicing our debt. This determination volition not person immoderate interaction on our existing operations and aboriginal plans," the billionaire added in a connection to Indian exchanges.

READ MORE: India's Gautam Adani accused of pulling 'largest con successful firm history'

"Once the marketplace stabilises, we volition reappraisal our capital market strategy."

A study by Hindenburg Research past week alleged improper use of offshore taxation havens and banal manipulation by the Adani Group. 

It besides raised concerns astir precocious indebtedness and the valuations of 7 listed Adani companies.

The January 24 study has since triggered an $86 cardinal erosion in the marketplace capitalisation of 7 listed Adani Group companies.

Adani Group has denied the allegations, saying the short-seller's allegation of banal manipulation has "no basis" and stems from an ignorance of Indian law. The radical has always made the indispensable regulatory disclosures, it added.

Source: Reuters