New Delhi: Adani Group has withdrawn its Rs 20,000 crore FPO (follow-on public offering). The new decision came after the company’s shares plunged to a 28 percent loss in the stock market on Wednesday. Company sources indicate that the FPO is being withdrawn due to the setback in the stock market. The company also said it will return the money to the investors.
The decision was made by the Adani Group Board of Directors. Gautam Adani, Chairman, Adani Group, said that proceeding with the FPO does not seem ethical in the current situation and therefore the decision has been taken to withdraw the FPO.
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“The company understands the interest of investors. This decision is to protect them from financial shocks. The company therefore does not wish to proceed with the FPO,” Adani said in a statement.
Adani Enterprises is the flagship company of the Adani Group. The company’s stock fell 28 percent on Wednesday.
At the same time, Reuters reported that the Securities Exchange Board of India was conducting a thorough examination of the collapse of Adani Group shares. An investigation is also underway into irregularities in the sale of shares.
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In the last five trading sessions, the market capitalization of Adani’s 10 listed companies has fallen by Rs 7.5 crore. The stock, which entered the Nifty last year, is down 28.45 percent today at Rs 2128.70. Last day, 112 percent of applications for FPO were received. But unexpected market moves on Wednesday prompted the Adani Group to withdraw the FPO.
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