India's Adani scraps $2.5B share sale after fraud claims
Embattled Indian billionaire Gautam Adani's flagship company says it is reviewing its fundraising options after calling off a $2.5 billion share offering that was seen as a crucial test of investor confidence
NEW DELHI (AP) — Indian conglomerate Adani Enterprises called off its $2.5 billion share offering after it lost tens of billions of dollars in market value due to fraud claims by a U.S.-based short-selling firm.
Billionaire Gautam Adani 's company said Thursday it will review its plans for raising capital after it canceled the share sale late Wednesday, citing “market volatility.”
Adani stocks 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 offering had drawn nearly 51 million bids, exceeding the 45.5 million offered to the public. It was seen as a crucial test of investor confidence in Adani, whose net worth had shot up about 2,000% in recent years as share prices for his listed companies soared.
