(Reuters) – Adani Enterprises Ltd has shelved a plan to raise up to 10 billion Indian rupees ($82). 65 million), Bloomberg reported on Saturday.
The flagship company of Indian billionaire Gautam Adani’s empire planned to issue public notes in January, in partnership with Edelweiss Financial Services Ltd, AK Capital, JM Financial and Trust Capital, but the activity has now ceased, the The report quoted people familiar with the matter as saying.
Adani Enterprises called off its $2.5 billion share sale on Wednesday, a dramatic reversal after criticism from US short-sellers wiped out the value of the Indian tycoon’s shares in a rout Billions more down.
India’s markets watchdog is already looking into the matter, including the plunge in the company’s share price, any irregularities in the now-suspended share sale and any possible price manipulation, Reuters reported this week.
A spokesman for Adani Group did not immediately respond to a Reuters request for comment. Edelweiss and AK Capital also did not respond to requests for comment, while JM Financial and Trust Capital could not be reached.
A Hindenburg Research report last week accused Adani Group of improper use of offshore tax havens and stock manipulation. It also raised concerns about high debt and the valuation of seven Adani-listed companies.
(1 USD=82.2060 Indian Rupees)