Adani Group cancels Rs 20,000 crore FPO, dramatic decision; Refund will be made by Adani Group

NEW DELHI: The Adani Group has canceled its subsidiary share issue (FPO) by Adani Enterprises to raise Rs 20,000 crore. The dramatic decision comes amid a massive fallout for the Adani Group in its stock split. The company said in a statement that the FPO is being withdrawn in view of the market volatility and the investors will be refunded the FPO money.

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“Today’s market is shocking. In view of these extraordinary circumstances, the Board of the Company feels that it is not morally right to proceed with the FPO. Investors’ interest is paramount. Therefore, the board has decided not to proceed with the FPO to save them from possible financial losses,” Adani Enterprises Chairman Gautam Adani said in a statement. Adani also expressed his gratitude to all those who participated in the FPO which ended on Tuesday.

Adani Enterprises is the parent company of the Adani Group. The FPO had a lukewarm response in the first few days, but the application surged on the last day. 4.5 crore shares were placed in the FPO. Application for 5.08 crore shares has been received. Meanwhile, common (retail) investors and Adani Group employees did not participate significantly in the FPO. Only 12% applications in retail quota. 55 percent of the employee quota. Most of the applicants are large corporations and existing shareholders such as Abu Dhabi International Holding.

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A follow-on public offer or FPO is a process by which companies listed on the stock exchange re-issue shares to raise more money. Adani Enterprises conducted the FPO amid allegations made by US financial research firm Hindenburg. Adani Group Chairman Gautam Adani was relegated to the eighth position in Forbes’ list of richest people. Adani is currently at the 11th position in Berg’s list.

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English Summary: Adani Enterprises’ FPO Called Off, Money To Be Refunded To Investors

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