Gautam Adani's flagship firm called off its $2.5 billion share sale in a dramatic reversal on Wednesday as a rout sparked by a U.S. short-seller's criticisms wiped billions more off the value of the Indian tycoon's stocks.
"The pain hitting Adani companies was crippling, so the news that share sale is called off is troubling, as this was supposed to show the company is still believed in by its high net-worth investors," said Edward Moya, a New York-based senior market analyst at brokerage OANDA.
After the share sale was pulled, yields of dollar-denominated bonds issued by Adani companies rose on Wednesday. Bond yields move inversely to prices. Yields of Adani Green Energy's $500 million bonds due in 2024 rose to 15.45% on Wednesday from 12.1%.
The company aims to protect the interests of its investing community by returning the proceeds, it said. Wednesday's stock losses saw Adani slip to 15th on the Forbes rich list with an estimated net worth of $75.1 billion, below rival Mukesh Ambani, the chairman of Reliance IndustriesThe share sale had succeeded on Tuesday even when the Adani Enterprises stock price in Mumbai markets traded below the offer price of the share sale.
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