Adani scraps $2.5B share sale after fraud claims hit stock

By KRUTIKA PATHI and SHEIKH SAALIQ
Associated Press

NEW DELHI (AP) — Embattled Indian billionaire Gautam Adani’s flagship company says it is reviewing its fundraising options after calling off a $2.5 billion share offering that was seen as a crucial test of investor confidence. The decision followed the loss of billions of dollars in market value after a U.S.-based short-selling firm, Hindenburg Research, accused the Adani Group of “brazen” stock market manipulation and accounting fraud, among other financial abuses. The Adani Group said it wasn’t going ahead with the offering because of market volatility and an “unprecedented situation.” The company said it will return proceeds from the offering, which was sold out as of Tuesday. Hindenburg has a track record of sending stock prices of its targets tumbling.