Adani Enterprises withdraws FPO, money will be returned to investors: company statement

New Delhi. Adani Enterprises on Wednesday announced the withdrawal of its Rs 20,000 crore follow-on public offering (FPO) and return of investors’ money. However, the FPO of the company was fully subscribed on Tuesday. Adani Enterprises is understood to have taken this step following a report by US-based shortselling company Hindenburg. According to BSC data, 4.55 crore shares were offered under the FPO of Adani Enterprises, while applications were received for 4.62 crore shares. Nearly three times the bids were received for 96.16 lakh shares reserved for non-institutional investors.

While 1.28 crore shares from the eligible institutional buyers’ segment were fully subscribed. However, the response to the FPO was lukewarm from retail investors and company employees. Gautam Adani, Chairman, Adani Enterprises Ltd said, “The FPO closed successfully on Tuesday, despite high volatility in the company’s stock last week. Your trust in the company and its business is our confidence booster for which we are grateful to you.” Adani said that today there were unexpected fluctuations in the company’s stock. “In view of the extraordinary circumstances, the board of directors of the company has decided that it would not be ethically sound to go ahead with the FPO.

The interest of the investors is of paramount importance to us and to protect them from any possible loss, the Board of Directors has decided to withdraw the FPO.” After the report of ‘Hindenburg Research’ last week, the shares of Adani group companies are continuously falling. This trend of decline continued on Wednesday as well. The collective market capitalization of the group companies has declined by Rs 7 lakh crore in the last five trading sessions.

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