A US-based short-seller's report last week accused the group of engaging “in a brazen stock manipulation and accounting fraud scheme over the course of decades.”
Adani Enterprises Ltd has shelved a plan to raise as much as $121.65 million (10 billion Indian rupees), Bloomberg News reported.
The flagship firm of Indian billionaire Gautam Adani's empire had planned the public note issuance for January, working with Edelweiss Financial Services Ltd, AK Capital, JM Financial, and Trust Capital, but activity has now stopped, the report said on Saturday, citing people familiar with the matter.
Adani Enterprises called off its $2.5 billion share sale in a dramatic reversal on Wednesday this week, after a rout sparked by a US short-seller's criticisms wiped billions more off the value of the Indian tycoon's stocks.
The Indian markets regulator is already investigating the matter, including the crash in the company's shares, any irregularities in the now-shelved share sale and any possible price manipulation, Reuters news agency reported this week.
A spokesperson for Adani Group did not immediately respond to Reuters request for comment. Edelweiss, AK Capital also did not respond to requests for comment, while JM Financial and Trust Capital could not be reached.
A report by Hindenburg Research last week alleged improper use of offshore tax havens and stock manipulation by the Adani Group. It also raised concerns about high debt and the valuations of seven listed Adani companies.
READ MORE: India's Adani speaks about turmoil as Citigroup stops margin loans
READ MORE: All you need to know about the Adani Group scandal