India's Adani ditches $2.5 billion share sale after $86 billion rout

Inauguration ceremony after the Adani Group completed the purchase of Haifa Port
Indian billionaire Gautam Adani speaks during an inauguration ceremony after the Adani Group completed the purchase of Haifa Port in Haifa Port, Israel January 31, 2023. REUTERS/Amir Cohen/File Photo

NEW DELHI, Feb 1 (Reuters) - India's Adani Enterprises Ltd (ADEL.NS) on Wednesday withdrew its $2.5 billion secondary share sale after Adani Group shares plummeted on concerns raised by a U.S. short-seller.

Here is a timeline of recent events that have wiped $86 billion off the market value of Adani Group companies.

JAN. 25

* Hindenburg says it holds short positions in Adani Group companies through U.S.-traded bonds and non-Indian-traded derivative instruments.

* Adani Group calls Hindenburg report "a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India's highest courts".

* Anchor investors Maybank Securities and Abu Dhabi Investment Authority pick up stake in Adani Enterprises' share sale, India's largest follow-on public offering (FPO).

* Indian shares fell to their lowest level in more than a week, dragged lower by Adani Group stocks.

Reuters Graphics

JAN. 26

* Adani Group says it is evaluating "remedial and punitive action" against Hindenburg under U.S. and Indian laws.

* Hindenburg says it fully stood by its report and "believe any legal action taken against us would be meritless".

Reuters Graphics

JAN 27

* Billionaire investor William Ackman says he finds Hindenburg report "highly credible and extremely well researched".

* Adani Enterprises, the flagship company of the group founded by billionaire Gautam Adani, begins its $2.5 billion FPO for retail investors.

* India’s market regulator increases scrutiny of deals by the Adani Group over the past year, according to two sources aware of the matter.

* Gautam Adani slips four places to become the world's seventh-richest person.

Reuters Graphics

JAN 28

* Index provider MSCI says it is seeking feedback on Adani Group and associated securities and aware of the Hindenburg report.

* The $2.5 billion share sale remains on schedule at the planned issue price, the company tells Reuters, while sources say bankers were considering changes due to a rout in the group's shares.

JAN 30

* Adani Group issues a detailed riposte to Hindenburg report, saying it complies with all local laws and had made the necessary regulatory disclosures. Stock losses top $65 billion.

* One of Adani Group's biggest shareholders, state-run Life Insurance Corporation (LIFI.NS), says it is reviewing the group's response to concerns raised by Hindenburg.

* Abu Dhabi conglomerate International Holding Company (IHC.AD) says it will invest 1.4 billion dirhams ($381 million) in Adani Enterprises' FPO.

JAN 31

* Adani Enterprises' FPO fully subscribed as investors pumped funds into the share sale, despite the rout in the group's stocks. The 30% anchor portion attracted investors including Maybank Securities and Abu Dhabi Investment Authority, as well as India's HDFC Life Insurance and Life Insurance Corp.

Reuters Graphics

FEB. 1

* Australia's corporate regulator says it will review Hindenburg report on Adani Group.

* Total losses in stocks of seven listed Adani Group companies since Hindenburg report swell to $86 billion.

* Reuters reports India's market regulator is examining the crash in shares of Adani Group and looking into any possible irregularities in the share sale by its flagship company.

* Adani Enterprises calls off FPO citing an "unprecedented situation and the current market volatility". It says it is working with its FPO banks to refund the proceeds.

Reporting by Krishna N. Das; Editing by Alexander Smith

Our Standards: The Thomson Reuters Trust Principles.