Adani Group Scraps FPO Of Shares Worth Rs 20,000 Cr, Investors To Get Refund


Adani Enterprises on Thursday announced the cancellation of its Follow-On Public Offering (FPO) of shares worth Rs 20,000 crore.

The development comes amid the ongoing row over the Hindenburg Research accusation against 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.

“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.

The allegations were strongly refuted by the Adani Group that said Hindenburg’s report is timed with a “mala fide intention” to damage Adani Enterprises FPO.

The Adani Group earlier issued a detailed 413-page response to New York-based short seller Hindenburg Research. The group said that “unsubstantiated allegations and misleading narrative are backed by relevant documents”. The Ahmedabad-based conglomerate led by Gautam Adani said that it complies with all local laws and had made the necessary regulatory disclosures, adding that the Hindenburg report was intended to enable the US-based short seller to book gains, without citing evidence.

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