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

Coming Up on Dubai Eye

  • The Score

    7:00pm - 9:00pm

    Hosted by Chris McHardy, The Score is your comprehensive guide to the world of sport.

  • The Music Mix

    9:00pm - 11:00pm

    Enjoy your favourite music back to back commercial free, tune in to the Music Mix everyday from 1 until 2 for the music you love and the news updates you need

BUSINESS BREAKFAST LATEST

On Dubai Eye

  • Is There Sufficient House Supply In UAE

    Dubai’s current population is more than double compared to almost twenty years ago, which now stands at 3.7 million. Lots of families are also moving to the UAE now. So what does it mean for the property market?

  • Noon's First Female Delivery Driver

    Glory Ehirim Nkiruka is Noon’s first ever female delivery driver. In her first ever interview, she explained why she loves her job, despite the heat!