On Breakingviews: Adani’s share sale U-turn is a sign support for the Indian industrialist has a limit – and that the controversy has room to run, says ugalani
Indian billionaire Gautam Adani speaks during an inauguration ceremony after the Adani Group completed the purchase of Haifa Port in Haifa port, Israel January 31, 2023. REUTERS/Amir Cohen/File Photo
HONG KONG, Feb 2 - Markets have given Gautam Adani a big bloody nose, and his backers a partial reprieve. The tycoon’s decision on Wednesday to pull the $2.4 billion share sale at his flagship Adani Enterprises was all but forced after a 28% plunge in the company’s share price the day after it closed the books. Cancelling the deal is marginally better than stuffing above-market-price stock down investors’ throats. The U-turn is nonetheless a key sign the support for the Indian industrialist has a limit.
His global backers were in a tight spot after signing up to buy stock. The Abu Dhabi Investment Authority, a sovereign wealth fund, popped up as an anchor investor on the deal before the shares were dragged down by Hindenburg Research’s short-selling attack accusing it of fraud and stock manipulation, allegations which Adani dismisses.
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