India
Adani scraps fully subscribed Rs 20,000 crore FPO, money to be returned to investors
New Delhi: Adani Enterprises has said it has decided to withdraw its fully subscribed Rs 20,000-crore follow-on public offer (FPO) and will return the proceeds to investors.
The announcement came a day after the company’s FPO was subscribed fully on the last day of the offer on Tuesday and ongoing row over the Hindenburg Research allegations.
The American short-seller accused the Adani Group of using tax havens and flagged debt concerns in a report.
“The Board of Directors of the Company at its meeting held today i.e. February 1, 2023 has decided, in the interest of its subscribers, not to proceed with the further public offer (FPO) of equity shares aggregating up to Rs 20,000 crore of face value Rs 1 each on partly paid-up basis, which was fully subscribed,” the company said in a statement to the National Stock Exchange.
“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,” the statement further read.
Adani Group stocks have been under stress since Hindenburg in its research report titled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History’, questioned the accounting and corporate governance practices of Adani Group, and also raised the issue of heavy debt last week.
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