Adani Enterprises shelves $122 million bond plan

© Reuters. FILE PHOTO: The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad, India, January 27, 2023. REUTERS/Amit Dave

(Reuters) -Adani Enterprises Ltd has shelved a plan to raise as much as 10 billion Indian rupees ($121.65 million), Bloomberg News reported on Saturday.

The flagship firm of Indian billionaire Gautam Adani’s empire had planned the public note issuance for January, working with Edelweiss Financial Services Ltd, AK Capital, JM Financial, and Trust Capital, but activity has now stopped, the report said, citing people familiar with the matter.

Adani Enterprises called off its $2.5 billion share sale in a dramatic reversal on Wednesday this week, after a rout sparked by a U.S. short-seller’s criticisms wiped billions more off the value of the Indian tycoon’s stocks.

The Indian markets regulator is already investigating the matter, including the crash in the company’s shares, any irregularities in the now-shelved share sale and any possible price manipulation, Reuters reported this week.

A spokesperson for Adani Group did not immediately respond to Reuters request for comment. Edelweiss, AK Capital also did not respond to requests for comment, while JM Financial and Trust Capital could not be reached.

A report by Hindenburg Research last week alleged improper use of offshore tax havens and stock manipulation by the Adani Group. It also raised concerns about high debt and the valuations of seven listed Adani companies.

($1=82.2060 Indian rupees)