Abu Dhabi’s International Holding Co., which invested about $400 million in Adani Enterprises Ltd.’s follow-on share sale, said the funds have been returned after the Indian billionaire pulled the deal.
“While the decision to withdraw its flotation isn’t unique, and we understand floats get pulled for various reasons”, the funds have been transferred back to its account, it said in a statement on Thursday. “IHC remains fully committed to being a transparent, responsible business, pursuing our strategy, and continuing our growth trajectory, as we capitalise on the opportunities ahead of us.”
The funding from IHC would have represented about 16 per cent of the offering and would have built on an almost $2 billion investment in Adani’s companies last year.
On Wednesday, the flagship company of Gautam Adani pulled a record Rs200 billion ($2.4 billion) share sale after a selloff triggered by Hindenburg Research’s report engulfed his group in turmoil. The shortseller has accused the flagship firm of market manipulation, accounting fraud and operating a web of controlled offshore shell entities in tax havens. Adani has repeatedly denied the allegations, called the report “bogus”, and threatened legal action.
The turmoil has seen Adani’s businesses lose more than $100 billion in a week, one of the biggest wipeouts in India’s history. Shares in Adani Enterprises sank 27 per cent on Thursday, adding to a 28 per cent tumble in the previous session.