Ajit Karn
Adani groups has cancelled its share sale, a source familiar with the situation told Reuters on Wednesday.
Adani groups has cancelled its $2.5 billion share sale due to current market conditions, the company announced on Wednesday, days after its stock price plummeted in response to criticism from a U.S. short seller.
“Given the unprecedented situation and the current market volatility, the Company intends to safeguard the interests of its investors by returning the FPO proceeds and withdrawing the completed transaction,” the company said in a statement.
Tuesday, Adani Group secured investor support for the share sale of Adani Enterprises, which was viewed by some as a vote of investor confidence in a time of crisis.
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On Wednesday, however, the decline in Adani group stocks and bonds resumed, with shares of Adani Enterprises falling 28% and those of Adani Ports and Special Economic Zone falling 19%, the worst day on record for both companies.
