Indian conglomerate Adani Enterprises has abandoned its $US2.5 billion share sale after a share price rout sparked by claims of fraud by a US hedge fund.

Last week's report by short seller Hindenburg Research accused Adani of share price manipulation, fraud, and the improper use of offshore tax havens.

Adani chairman Gautam Adani has seen billions of dollars wiped from his personal fortune since the report was released.

But he still has an estimated net worth of $US75 billion at 15th on the Forbes rich list.

And seven publicly listed Adani companies have lost $US86 billion in value over the past week.

Mr Adani called off the share sale yesterday, a day after it closed, as Adani Enterprise's shares, Adani's holding company, plummeted by 28 per cent. 

"Today the market has been unprecedented and our stock price has fluctuated over the course of the  day," Mr Adani said.

"Given these extraordinary circumstances, the company's board felt that going ahead with the issue will not be morally correct."

Mr Adani also brushed off Hindenburg's concerns about his companies high levels of debt and the valuations of seven listed Adani companies.

"Our balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt."

"This decision will not have any impact on our existing operations and future plans."

"Once the market stabilises, we will review our capital market strategy."

Adani has denied Hindenburg's allegations and threatened to sue the US firm.

It says it plans to hire a major global accounting firm to assess its corporate governance and audit practices.

Hindenburg disclosed that it holds short positions in Adani companies through US traded bonds and non-Indian traded derivatives.

It describes itself on its Twitter feed as:

 "Popping bubbles as we see them."

"We express strong opinions. Not investment advice."

Keystone investors who supported Adani's share sale include Maybank Securities and the Abu Dhabi Investment Authority.

Adani said it would return the proceeds of the share sale.

Edward Moya, senior market analyst at stockbroker OANDA, said the cancellation of the share sale was troubling.

"The pain hitting Adani companies was crippling, so the news that the share sale is called is troubling, as this was supposed to show the company is still believed in by its high net-worth investors," Mr Moya said.

"To go through this exercise of a share sale and to call it off raises more questions."

Reuters