ISLAMABAD/MUMBAI: Adani Enterprises canceled its $2.5 billion share sale after its share price plunged more than 26% or $90 billion during the last week.
The company confirmed that the $2.5 billion raised from the sale would be returned to investors.
The Adani Group’s companies have seen over $90 billion wiped off their value after a US investment firm made fraud claims, which Adani denies, according to Bloomberg.
The conglomerate’s 60-year-old head has slipped to the 15th rank on Forbes real-time billionaires list, with a net worth of $74.7 billion following the allegations by Hindenburg Research.
In a report last week, the US-based research firm raised concerns about Adani’s high debt levels and the use of offshore tax havens.
Hindenburg accused Adani of stock manipulation, accounting fraud
Hindenburg accused Adani of engaging in stock manipulation and accounting fraud and claimed that the group’s companies were under substantial debt that put the entire group on a precarious financial footing.
The report came days before a planned sale of Adani’s shares to the public, and on Tuesday, the $2.5 billion share sale in the conglomerate’s flagship firm managed to scrape through to be fully subscribed despite the controversy.
Adani Group, one of India’s largest companies that operates in various industries, including commodities trading, airports, utilities, and renewable energy, has dismissed Hindenburg’s allegations as untrue and malicious.