Adani Group cancels its 20 thousand crore FPO, will return investors' money

Adani Group has taken an important step after the questions of the report of the American short seller Hindenburg Research. The report by Hindenburg Research has accused the company of using tax havens citing huge debts.

Adani Enterprises has announced the cancellation of its follow-on public offering (FPO) worth Rs 20,000 crore. While announcing this late on Wednesday, the company said, it will return all the money to the investors of this FPO.

Adani Group has taken an important step after the questions of the report of the American short seller Hindenburg Research. The report by Hindenburg Research has accused the company of using tax havens citing huge debts.

Adani Group said in an exchange filing, “The board of directors of the company, in its meeting held today i.e. 1 February 2023, has decided not to proceed with the FPO of up to Rs 20,000 crore with a face value of Rs 1 on a partially paid-up basis in the interest of its customers.

Adani Enterprises chairman Gautam Adani released a statement on Wednesday night saying the decision was taken amid volatility in the group’s shares during the day’s trading. Gautam Adani said in his statement, ‘The Board would like to thank all investors for your support and commitment to our FPO. Subscription for FPO was successfully closed yesterday. Despite the volatility in the stock over the past week, your faith and trust in the company’s business and its management has been extremely reassuring and humbling. thank you

Gautam Adani added in his statement, ‘However, the market today was uneventful and our share price fluctuated during the day. In view of these extraordinary circumstances, the Board of the Company felt that it would not be ethical to proceed with this FPO. The interests of the investors are paramount and hence to protect them from any possible financial loss, the Board has decided not to proceed with the FPO.