Adani Abruptly Abandons $2.4 Billion Stock Sale as Crisis Mounts

The flagship company of beleaguered Indian tycoon Gautam Adani pulled a record 200 billion-rupee ($2.4 billion) share sale after a selloff triggered by a US short seller’s report engulfed his group in turmoil, Bloomberg News reported. Adani Enterprises Ltd. decided not to go ahead with its follow-on public offer of shares, according to a statement late on Wednesday. India’s Mint newspaper reported earlier that Adani was considering withdrawing the share sale, even though it was fully subscribed with backing from prominent Indian and Gulf investors. The decision came after a renewed slump in price for the company and sister firms. The plunge accelerated after Bloomberg News reported Credit Suisse Group AG has stopped accepting bonds of Adani’s group of companies as collateral for margin loans to its private banking clients. Adani Enterprises was offering shares to investors at 3,112 rupees to 3,276 rupees apiece in the offering. The company’s stock closed Wednesday at 2,135.35 rupees, or 31% below the bottom of the price range, meaning any investor in the share sale would be sitting on immediate losses. Read more.