Abu Dhabi’s International Holding Co, which invested around $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 capitalize on the opportunities ahead of us.”
The funding from IHC, which is controlled by a key member of the emirate’s royal family, would have represented about 16percent 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 200 billion-rupee ($2.4 billion) share sale after a selloff triggered by Hindenburg Research’s report engulfed his group in turmoil. The short-seller 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 then $100 billion in a week, one of the biggest wipeouts in India’s history.
Ahead of the sale, IHC had voiced confidence in Adani ahead of the share sale saying its interest was “driven by our confidence and belief in the fundamentals” of the company.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Samosa, biryani, tea: District poll panels fix varied menu, ceiling for LS polls expenditure
Mar 29, 2024 3:14 PM
Mahagathbandhan announces seat-sharing in Bihar, RJD to contest on 26 seats, Cong 9
Mar 29, 2024 2:25 PM
Lok Sabha elections 2024 Dibrugarh to Jorhat — key seats in Assam
Mar 29, 2024 1:11 PM
Lok Sabha Election 2024: Hajipur to Patna Sahib — key seats in Bihar
Mar 29, 2024 12:28 PM