Indian conglomerate Adani Enterprises has abandoned its $US2.5 billion share sale after a share price rout sparked by claims of fraud by a US hedge fund.
Last week’s report by short seller Hindenburg Research accused Adani of share price manipulation, fraud, and the improper use of offshore tax havens.
Adani chairman Gautam Adani has seen billions of dollars wiped from his personal fortune since the report was released.
But he still has an estimated net worth of $US75 billion at 15th on the Forbes rich list.
And seven publicly listed Adani companies have lost $US86 billion in value over the past week.
Mr Adani called off the share sale yesterday, a day after it closed, as Adani Enterprise’s shares, Adani’s holding company, plummeted by 28 per cent.
“Today the market has been unprecedented and our stock price has fluctuated over the course of the day,” Mr Adani said.
“Given these extraordinary circumstances, the company’s board felt that going ahead with the issue will not be morally correct.”
Mr Adani also brushed off Hindenburg’s concerns about his companies high levels of debt and the valuations of seven listed Adani companies.
“Our balance sheet is very healthy with strong cashflows 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.”
“Once the market stabilises, we will review our capital market strategy.”
Adani has denied Hindenburg’s allegations and threatened…