Adani empire loses more than $100bn, stock sale canceled

Adani empire loses more than $100bn, stock sale canceled

MUMBAI: The crisis around Indian tycoon Gautam Adani deepened Thursday with the total loss of value to his indebted empire topping $100 billion after it abruptly cancelled a stock sale. The going up in smoke of more than a third in value of the billionaire’s conglomerate follows allegations of accounting fraud on Jan 24 by US short-seller Hindenburg Research.

Flagship firm Adani Enterprises dived more than 25 percent on Thursday on top of an almost 30-percent drop Wednesday. Other listed Adani units were subject to trading halts after falling as much as 10 percent, including Adani Total Gas in which France’s TotalEnergies has a 37.4-percent stake. Further panic has seen big banks including Credit Suisse and Citigroup stop accepting Adani bonds as collateral for loans to private clients, according to Bloomberg News.

This raised worries about how Adani will raise fresh funds, with Adani dollar bonds trading at distressed levels and signs of contagion in Indian markets increasing, Bloomberg reported. The latest blow came after Adani late Wednesday cancelled a $2.5-billion stock sale meant to help reduce debt levels – long a concern – restore confidence and broaden its shareholder base.

The issue failed to attract “mom and dad” retail investors and only