Adani abandons $2.5 billion share sale in big blow to Indian tycoon

Adani abandons $2.5 billion share sale in big blow to Indian tycoon

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Adani Group was working with its bankers to return the proceeds of the secondary share sale to Adani Enterprises. Anchor investors backing the issue included Maybank Securities and Abu Dhabi Investment Authority.

The company aims to protect the interests of its investment community by returning income, it said.

The Adani Group had on Tuesday garnered enough support from investors to go ahead with the sale of shares, which was seen by some as a seal of confidence from investors amid the storm.

But after a brief respite, selling resumed in Adani Group shares and bonds on Wednesday, with shares of Adani Enterprises plunging 28% and Adani Ports and Special Economic Zone 19%, the most on record for both. bad day

The fundraising was important for Adani, not only because it would help reduce his group’s debt, but also because it was seen by some as a gauge of confidence as he made the biggest business deal of his career. And had faced the prestigious challenge.

Wednesday’s stock losses saw Adani slip to the 15th spot on the Forbes rich list with an estimated net worth of $75.1 billion, below Reliance Industries chairman Mukesh Ambani, who ranked ninth with a net worth of $83.7 billion. Is.

The share sale was successful on Tuesday even when the share price of Adani Enterprises was trading below the offer price of the share sale in Mumbai bourses.

“I don’t know how the market will behave in the short term. But this is a measure to enhance (Adani’s) reputation as investors were staring at 30% losses even before the shares were allotted,” Rajesh Baheti, chief executive officer, said. Told. CrossSeas Capital Services, an algo trading firm.

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