Adani Enterprises Ltd has canceled its plans to raise up to $121.65 million via a public bond sale due to the recent market downturn, according to sources. The company, part of Indian billionaire Gautam Adani’s empire, had been working with Edelweiss Financial Services Ltd., AK Capital, JM Financial, and Trust Capital on the bond issuance planned for January. However, the plans have now been put on hold.
This news comes on the heels of accusations of stock manipulation and accounting fraud made by US shortseller Hindenburg Research. Adani Enterprises has vehemently denied these allegations, but its stock and bond prices have suffered nonetheless. As a result, the company was forced to pull a 200 billion rupee follow-on public offer of shares last week.
This sudden change in fortune highlights a sharp contrast from just a few months ago, when Adani Enterprises was seeking to raise funds for expansion. The recent market conditions have made debt financing for the company and its subsidiaries much more expensive, with yields on Adani Green Energy Ltd. bonds jumping over 36% last week.
Representatives from Edelweiss declined to comment, and the other financial firms involved in the bond offering did not immediately respond to requests for comment. There was also no response from a spokesperson for Adani Group to an email request for comment.
According to Moody’s Investors Service, the recent market turbulence is expected to affect Adani Enterprises’ ability to raise money for capital expenditure projects or debt refinancing over the next year or two.
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