MUMBAI, Oct 11 Reuters Billionaire Gautam Adani39;s flagship firm Adani Enterprise has raised 500 million via a share sale to local insurance and mutual funds firms and an existing U.S. based investor, two sources with direct knowledge said.

The share sale marks the company39;s return to equity markets after it scrapped a 2.5 billion plan in February last year following a shortseller Hindenburg39;s report accusing Adani Group of misusing offshore tax havens and stock manipulation. The group has denied the allegations.

The share sale launched on Wednesday was oversubscribed four times, receiving bids up to 2 billion, according to the sources, who asked not to be identified as the information is private. SBI Life Insurance along with other local insurance and mutual fund firms, as well as U.S. based GQG Partners invested in the issue, they added.

U.S. boutique investment firm GQG Partners39;s 1.87 billion infusion last year in Adani group companies after the shortseller report helped restore some confidence in the conglomerate.

Adani Enterprises in May approved raising up to 2 billion through modes including a socalled Qualified Institutional Placement QIP method used by listed Indian companies to raise funds from large institutions.

The firm originally intended to raise more funds if market conditions permitted, but due to volatile market and geopolitical situations, it decided to raise only 500 million for now and still has multiple options for fundraising in future,…