India's Adani Enterprises calls off $2.5 billion share sale

PUNIT PARANJPE/ AFP

India's Adani Enterprises has called off its $2.5 billion share sale due to prevailing market conditions, the company said on Wednesday, days after a rout in its stocks following criticism by a U.S. short-seller.

"Given the unprecedented situation and the current market volatility the Company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction," the company said in a statement.

On Tuesday, Adani Group mustered support from investors for the share sale for Adani Enterprises, in what some saw as a stamp of investor confidence at a time of crisis.

But the selloff in Adani group stocks and bonds resumed on Wednesday, with shares in Adani Enterprises plunging 28 per cent and Adani Ports and Special Economic Zone dropping 19 per cent, the worst day on record for both.

More from Business News

On Virgin Radio today

Trending on Virgin Radio

  • If Craig David had a verse on Azizam

    The legendary Craig David joins The Kris Fade Show for an unforgettable chat!

  • Untold Dubai

    It arrived: The UAE's First Mega Music Festival at Expo City Dubai!

  • Ed Sheeran - UAE EXCLUSIVE

    Latest album, what happened with BTS, raising a baby girl, eye surgery, and more!

  • ARN News Centre

    Get the latest UAE and world news from our award winning team of journalists. The ARN News Centre is the country's most trusted source of information.