New Delhi, India: The troubled Indian conglomerate Adani Group has cancelled a highly anticipated share offer amid an intensifying crisis brought on by fraud allegations that have destroyed more than $90 billion in value from the power-to-ports enterprise and increased the likelihood of forced asset sales.

As banks analyse their exposure, the continuous selling has also raised concerns about ‘how Adani’, which manages Australia’s contentious Carmichael coalmine and rail project in Queensland, would fulfil its loan obligations.

The Indian business sought to allay concerns by concluding a $2.5 billion share sale intended, in part, to pay off debt, one week after US-based Hindenburg Research accused Adani companies of stock manipulation and accounting fraud.

However, fresh waves of selling this week at its listed companies, including its flagship Adani Enterprises, which was hosting the fundraiser, meant that should the sale have gone through, participating investors would have sustained substantial and quick losses.

“Given these extraordinary circumstances, the company’s board felt that going ahead with the issue will not be morally correct, once the market stabilises, we will review our capital market strategy,” Mr. Adani stated.

A prominent Abu Dhabi investor with connections to the royal family and investor support from within India helped Adani originally execute the share sale. The conglomerate, which was once worth around US$220 billion before losing more than one-third of its value, has referred to Hindenburg’s research as a “calculated attack on India,” a claim that the US business has refuted.

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