STORY: The total market losses at India’s Adani Group have swelled to over $100 billion.
Shares in associated companies have been tumbling since the release of a scathing report by U.S. short-seller Hindenburg Research.
It accused Adani of stock manipulation and improper use of offshore tax havens.
The firm has called the allegations baseless.
But its troubles deepened late Wednesday (February 1) when it was forced to cancel a share sale for flagship unit Adani Enterprises.
The $2.5 billion sale, or Follow-on Public Offer, had seemed poised to proceed.
In video released early Thursday (February 2) though, Adani’s founder said it would have been wrong to go ahead:
"After a fully subscribed FPO, yesterday's decision of its withdrawal would have surprised many. But considering the volatility of the market seen yesterday, our board strongly felt that it would not have been morally correct to proceed with the FPO."
Gautam Adani’s own assets have taken a hammering.
His net worth has tumbled by tens of billions, dropping him to 16th on the list of the world’s richest people.
Just days ago he was third.
The ripples could go far further.
Adani’s plummeting stocks have raised concerns over the impact on India’s financial system.
The country’s central bank has asked local lenders for details on their exposure to the group.
Meanwhile, Adani himself is doing is his best to reassure:
"The fundamentals of our company are very strong. Our balance sheet is healthy and assets robust.”
Right now though, the school dropout turned multi-billionaire faces an uphill task restoring confidence in his sprawling empire.