Shares of Adani Group companies continued their multi-day plunge Thursday, hours after the Indian conglomerate cancelled an up-to-$2.5 billion share sale amid a record dive in the stock price of its flagship company.
Shares of Adani Enterprises
were last down 8.8%, a day after the stock fell more than 28% in its biggest one-day loss since listing in 1998. Six other Adani companies were also down, including Adani Green Energy Ltd.
Adani Transmission Ltd.
and Adani Total Gas Ltd.
which all fell 10%.
Adani Enterprises won bids this week for a share sale worth up to $2.5 billion, largely supported by institutional investors. But following the plunge in its shares, Chairman Gautam Adani said in a stock-exchange filing late Wednesday that the company had decided not proceed with the offering, as the board felt that doing so “will not be morally correct.”
“The interest of the investors is paramount and hence to insulate them from any potential financial losses, the board has decided not to go ahead” with the follow-on offering, he said.
He said the company’s balance sheet is healthy, and that the decision to reverse course on the offering won’t have any impact on existing operations and plans.
Adani stocks have been under pressure since the publication of a scathing report by U.S. short seller Hindenburg Research last week that alleges misconduct, including fraudulent practices at the group. Adani has denied the allegations.
Read: Who is Mukesh Ambani? He is now Asia’s richest person after Adani’s stock-market tumbles.
Write to Yi Wei Wong at firstname.lastname@example.org