What is FPO regarding which Adani Group took this big decision? investors money will be returned

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Adani Group has decided to cancel its FPO. in this regard Adani Enterprises Limited Chairman Gautam Adani Said that in view of the ups and downs in the market, the board of the company has taken this decision. Adani Enterprises on Wednesday announced the withdrawal of its Rs 20,000 crore follow on public offer (FPO) and return of investors’ money. However, the FPO of the company was fully subscribed on Tuesday. If experts are to be believed, Adani Enterprises has taken this step after the report of American shortselling company Hindenburg.

Know what is FPO

Let us tell you what is Follow on Public Offer (FPO)? Actually, there is a way to raise money for a company which was also adopted by Adani Group. The company which is already listed in the stock market, does the work of offering new shares to the investors. These shares are different from the shares present in the market.

1.28 crore shares fully subscribed

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. At the same time, 1.28 crore shares of eligible institutional buyers were fully subscribed. However, the response to the FPO was lukewarm from retail investors and company employees.

why the decision was taken

Gautam Adani, chairman of Adani Enterprises Ltd, said the FPO closed successfully on Tuesday despite high volatility in the company’s stock last week. Your trust towards the company and its business is our confidence booster for which we are grateful to you. Adani said that today there were unexpected ups and downs in the company’s stock. He said that 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 save them from any possible loss, the Board of Directors has decided to withdraw the FPO.

Report of ‘Hindenburg Research’

Let us tell you that 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 group companies has declined by Rs 7 lakh crore in the last five trading sessions.

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