Gautam Adani calls off $2.5 billion equity sale as regulatory concerns grow - CNBC
In a Jan. 24 report, short seller Hindenburg Research alleged that "Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme."
Speculation is growing that the Securities and Exchange Board of India (SEBI) will conduct some type of investigation into Adani's businesses."My understanding is that a cancellation would mean a mandatory SEBI inquiry," said Pramit Chaudhuri, Eurasia Group's head of South Asia practice, to CNBC.The stunning reversal caps a week in which Adani went on a full mission to ensure his equity sale was successful following immense pressure tied to his falling stock price.Adani Enterprises' stock ended higher on Tuesday following news of the fully subscribed $2.5 billion offering."We are working with our Book Running Lead Managers (BRLMs) to refund the proceeds received by us in escrow and to also release the amounts blocked in your bank accounts for subscription to this issue," added Adani.