By The Wall Street Journal: Adani Enterprises scraps $2.5 billion stock offering amid scrutiny from short seller
Indian billionaire Gautam Adani’s flagship company reversed course and canceled a share sale of up to $2.5 billion, as it continues to grapple with the fallout from fraud allegations by U.S. short seller Hindenburg Research.
A day earlier, Adani Enterprises
512599,
-28.45%
had collected enough investor bids to pull off the so-called follow-on public offering, or FPO. Adani Enterprises is one of several listed companies within Mr. Adani’s namesake conglomerate, the Adani Group.
“Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction,” Adani Enterprises said in a statement late Wednesday.
The cancellation marks the latest development since Hindenburg last week published a report containing wide-ranging allegations of fraud and malpractice at Mr. Adani’s companies. Adani Group, his conglomerate, has issued a lengthy rebuttal to the report.
