(Bloomberg) --

Abu Dhabi’s International Holding Co., which invested about $400 million in Adani Enterprises Ltd.’s follow-on share sale, said the funds have been returned after the Indian billionaire pulled the deal.

“While the decision to withdraw its flotation isn’t unique, and we understand floats get pulled for various reasons” the funds have been transferred back to its account, it said in a statement on Thursday. “IHC remain fully committed to being a transparent, responsible business, pursuing our strategy, and continuing our growth trajectory, as we capitalize on the opportunities ahead of us.”

The funding from IHC, which is controlled by a key member of the emirate’s royal family, would have represented about 16% of the offering and would have built on an almost $2 billion investment in Adani’s companies last year. 

On Wednesday, the flagship company of Gautam Adani pulled a record 200 billion-rupee ($2.4 billion) share sale after a selloff triggered by Hindenburg Research’s report engulfed his group in turmoil. The shortseller has accused the flagship firm of market manipulation, accounting fraud and operating a web of controlled offshore shell entities in tax havens. Adani has repeatedly denied the allegations, called the report “bogus,” and threatened legal action. 

The turmoil has seen Adani’s businesses lose more then $100 billion in a week, one of the biggest wipeouts in India’s history. Shares in Adani Enterprises sank 27% on Thursday, adding to a 28% tumble in the previous session.

Ahead of the sale, IHC, which is controlled by a key member of the emirate’s royal family, had voiced confidence in Adani ahead of the share sale saying its interest was “driven by our confidence and belief in the fundamentals” of the company.

(Adds share price in penultimate paragraph. An earlier version of this story was corrected to remove IPO from the headline.)

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