Dramatic reversal by Indian group is due to ‘unprecedented situation’ and market volatility after short-seller’s criticisms wiped billions off its value
New Delhi — Gautam Adani’s flagship firm called off its $2.5bn share sale in a dramatic reversal on Wednesday as a rout sparked by a US short-seller’s criticisms wiped billions more off the value of the Indian tycoon’s stocks.
"Our balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt. This decision will not have any impact on our existing operations and future plans," the billionaire added in a statement to Indian exchanges. The company aims to protect the interests of its investing community by returning the proceeds, it said.
The fundraising was critical for Adani, not just because it would have helped cut his group's debt, but also because it was being seen by some as a gauge of confidence as he faced the biggest business and reputational challenge of his career.
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