Adani Enterprises Ltd. is holding a board meeting to consider selling stock, in the wake of turmoil following a short seller alleging corporate fraud.
The meeting will be held on May 13, the company said in a statement to the National Stock Exchange of India. The firm didn’t disclose how much money it intended to raise.
The stock plummeted in January when Hindenburg Research issued its report on Gautam Adani’s empire, which includes Adani Enterprises. The shares of what is often considered the flagship unit of Adani’s holdings have recovered a little, but are still down about 50% this year.
Read more: The big short that cost India’s Adani empire $100 billion
Adani Enterprises was close to completing a 200 billion-rupee ($2.4 billion) stock sale in late January, but the Hindenburg report tanked the shares, and the company pulled the offering.
The company intended to use the stock sale in January to address concerns already being raised about the firm. The offering would have widened the investor base to fend off allegations that the shares, which had nearly doubled in the previous 12 months, were rising because they were thinly traded. Proceeds would have also been used to pay down debt and reduce leverage — another critique.
Hindenburg’s allegations, which Adani has rebutted, include using tax havens to inflate revenue and stock prices.
(Updates with background on previous attempt to sell shares beginning in fourth paragraph.)
