NEW DELHI (Reuters) -India’s Adani group shares plunged on Thursday after the Gautam Adani-led conglomerate shelved a $2.5 billion share sale amid a turbulent market, bringing its cumulative market capitalisation losses to $100 billion since final week’s short-seller assault.

The withdrawal of Adani Enterprises’ share sale marks a dramatic setback for Adani, the varsity dropout-turned-billionaire whose fortunes rose quickly lately in keeping with the inventory values of his companies.

Adani on Wednesday known as off the share sale as a shares rout sparked by U.S. short-seller Hindenburg’s criticisms deepened, regardless of the supply being absolutely subscribed on Tuesday. Within the fallout of the short-seller’s assault, Adani has additionally misplaced his title as Asia’s richest man.

The group’s flagship agency – Adani Enterprises – plunged 10% after opening greater on Thursday. Different group firms – Adani Ports and Particular Financial Zone, Adani Complete Gasoline, Adani Inexperienced Power and Adani Transmission – fell 10% every, whereas Adani Energy and Adani Wilmar dropped 5% every.

The shares tumble and shelving of the share sale mark an embarrassing flip of occasions for the billionaire who has cast partnerships with overseas gamers in his world enlargement of companies that stretch from ports to mining to cement.

Adani is now the world’s sixteenth richest, as per Forbes’ listing, down from third rank final week.

India’s central financial institution has requested native banks for particulars of their publicity to the Adani group of firms, authorities and banking sources advised Reuters on Thursday. CLSA estimates that Indian banks had been uncovered to about 40% of the two trillion rupees ($24.53 billion) of Adani group’s debt within the fiscal 12 months to March 2022.

Earlier this week, the Adani group mentioned it had the entire help of traders, however investor confidence has tapered in current days.

Citigroup (NYSE:)’s wealth unit has stopped extending margin loans to its purchasers in opposition to securities of Adani group, a supply with direct information of the matter mentioned on Thursday. Citi declined to remark.

Hindenburg’s report final week alleged an improper use of offshore tax havens and inventory manipulation by the Adani group. It additionally raised issues about excessive debt and the valuations of seven listed Adani firms.

The Adani group has denied the accusations, saying the short-seller’s allegation of inventory manipulation has “no foundation” and stems from an ignorance of Indian regulation. The group has all the time made the mandatory regulatory disclosures, it added.

As shares plunged after the Hindenburg report, Adani managed to safe the share sale subscriptions on Tuesday regardless that the inventory’s market worth was beneath the problem’s supply worth. However on Wednesday, shares plunged once more.

In a late night time announcement on Wednesday, Adani mentioned he was withdrawing the share sale as the corporate’s “inventory worth has fluctuated over the course of the day. Given these extraordinary circumstances, the corporate’s board felt that going forward with the problem is not going to be morally right.”