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Adani calls off share sale after price plunges

Last week, Hindenburg Research, a company that specialises in “short-selling”, or betting against a company’s share price in the expectation that it will fall, released a report that accused Mr Adani of “pulling the largest con in corporate history”.

Source link In light of the recent financial turmoil gripping the Australian stock market, Indian company Adani Group have announced that they have abandoned the sale of their shares.

The company, whose core operations include the industrial and trading of commodities and energy, aimed to raise around A$2 billion from the IPO before delisting from the Australian Securities Exchange (ASX).

However, in recent months, the stock has seen its share price decline significantly, causing Adani Group to reassess their financial goal.

Commenting on the decision, Adani Group’s Chief Executive Officer Gautam Adani said: “In the present market condition, we do not find it prudent to raise capital from the equity markets.”

This is certainly not surprising, given the fact that the share price has seen its lowest point since May 2017, falling to A$2.20. This was after hitting a high of A$2.60 back in March, when the initial share sale was announced.

The news will no doubt cause a significant financial setback for the Adani Group, which was hoping to use the funds generated from the IPO to support its long-term growth strategy.

While the company remains confident that their current strategy is sound, the development serves as a cautionary reminder of the current state of the market.

It also serves as a reminder that investors need to be extremely cautious when investing in the stock market, and not expect quick, easy returns.

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