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Adani Live Updates: Adani Enterprises has called off its share sale after the share prices drop

After shares dropped 26%, the parent company of the Adani Group announced that the $2.5 billion (£2 billion) received from the sale will be paid back to investors. Since a US investment firm allegedly committed fraud, the value of the group's firms has been reduced by more than $90 billion. Adani disputes the charges.


The creator, Gautam Adani, is no longer among the top ten richest people in the world.


With a net worth of $74.7 billion, Mr. Adani is currently the 15th richest person in the world, according to the Forbes real-time billionaires list. Last week, he was third on the list. One of India's largest enterprises, Adani Group, is managed by a billionaire. The flagship business, Adani Enterprises, is active in many different sectors, including renewable energy, commodities trading, airports, and utilities.


A study accusing Mr. Adani of "performing the greatest fraud in corporate history" was published last week by Hindenburg Research, a company that specializes in "short-selling," or betting against a company's share price in the anticipation that it will decline. The Adani Group was also accused of engaging in years of "brazen" stock manipulation and accounting fraud, and it was asserted that the group's companies had "significant debt" that put the whole organization on "precarious financial footing." The organization has denied the accusations, calling them an "attack on India," and characterized them as vicious and inaccurate. Days before an anticipated public sale of Adani shares, this study was released. 


Adani’s Defense of the matter


On Tuesday, the $2.5 billion share sale of the group's flagship company barely made it through to being fully subscribed. Adani Group announced after the market had closed that owing to "the unusual scenario and the current market volatility," the business will return the proceeds from the sale of its shares. According to Mr. Adani, "the Company's board felt that moving further with the matter would not be morally correct given these unique circumstances." "The investors' interests are of utmost importance, hence the Board has decided not to proceed with the FPO (follow-on public offer) in order to protect them from any potential financial losses."


The balance sheet of the business, according to Mr. Adani, is "extremely healthy with solid cashflows and stable assets." He continued, "We have a spotless record of repaying our obligation. "This choice won't affect our ongoing operations or our future goals in any way." In response to the accusations made against it, Adani Group stated that it was considering "punitive and corrective action" against Hindenburg Research in both the US and India.


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