Welcome Guest! You are here: Home » Business & Career

Adani Enterprises cancels FPO as shares keep falling

Adani Group's shares fell by about 28% ever since US based financial research firm Hindenburg Research accused it of indulging in "manipulation" and "fraud". Read More

Thursday February 2, 2023 9:00 AM, ummid.com with inputs from Agencies

Adani Enterprises cancels FPO as shares keep falling

New Delhi: Hours after its shares crashed at the bourses, the Adani Group on Wednesday evening decided to call off its Rs 20,000 crore follow-on public offer (FPO), saying that money would be returned to the investors.

The decision was taken after a meeting of the company's Board.

"The Board of Adani Enterprises Ltd decided not to go-ahead with the fully subscribed follow-on public offer (FPO). Given the unprecedented situation and the current market volatility, the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction," a statement issued by Adani Enterprises said on Wednesday.

Adani Group Chairman Gautam Adani said:

"The Board takes this opportunity to thank all the investors for your support and commitment to our FPO. The subscription for the FPO closed successfully yesterday."

"Despite the volatility in the stock over the last week, your faith and belief in the company, its business and its management has been extremely reassuring and humbling. Thank you", he added.


"Not morally correct"

The statement further said that on Wednesday, the market was unprecedented, and "our stock price has fluctuated over the course of the day."

"Given these extraordinary circumstances, the companya's Board felt that going ahead with the issue would not be morally correct", Adani said.

"The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO", he added.

Adani Group's shares fell by about 28% ever since US based financial research firm Hindenburg Research accused it of indulging in "manipulation" and "fraud" to over-value share prices on January 24, 2023.

Adani Enterprises went ahead with the FPO that sailed through allegedly with the help of some of Adani's corporate friends but failed to enthuse small time investors. Consequently, Adani decided to cancel the FPO and return the money.

"We are working with our book running lead managers to refund the proceeds received by us in escrow and to also release the amounts blocked in your bank accounts for subscription to this issue," Adani said in the statement.

"Our balance sheet is very healthy with strong cash flows 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. We will continue to focus on long-term value creation and growth will be managed by internal accruals. Once the market stabilises, we will review our capital market strategy", Adani said.


For all the latest News, Opinions and Views, download ummid.com App.

Select Language To Read in Urdu, Hindi, Marathi or Arabic.

Google News

Share this page

 Post Comments
Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Top Stories