Adani Enterprises calls off $2.4bn share sale

Adani Enterprises has called off its $2.4bn equity fundraising in the latest blow to Indian billionaire Gautam Adani, who has seen shares in his industrial empire tumble after a short seller made allegations of fraud and stock manipulation.

The decision to pull the share sale marks an abrupt turn from a day earlier, when people involved in the deal said it was fully backed by investors including Abu Dhabi’s International Holding Company and London-listed Jupiter Asset Management.

In a regulatory filing on Wednesday evening, Adani said that “given the unprecedented situation and the current market volatility”, it was “returning the . . . proceeds and withdraws the completed transaction”.

The group added that it was working with its bankers to issue refunds. “Our balance sheet is very healthy with strong cash flows and secure assets, and we have an impeccable track record of servicing our debt. This decision will not have any impact on our existing operations and future plans,” it said.

Adani Enterprises shares have slid almost 40 per cent since short seller Hindenburg alleged that the company’s parent Adani Group, whose businesses stretch from ports to data centres, used offshore entities in tax havens to inflate artificially the share prices of its listed companies, allowing them to take on more debt and “putting the entire group on a precarious financial footing”.

Adani’s efforts to ease concerns among investors, including a 413-page response rejecting the US short seller’s allegations, have failed to stem the declines in its stock price

This is a developing story