New Delhi: Adani Group has withdrawn its Rs 20,000 crore FPO (follow-on public offer). The new decision came after the company’s shares plunged to a 28 percent loss in the stock market on Wednesday. Sources of the company indicate that the FPO is being withdrawn due to the setback in the stock market. The company also stated that it will return the money to the investors.
The decision was taken by the Board of Directors of the Adani Group. Gautam Adani, Chairman, Adani Group, said that going ahead with the FPO does not seem ethical in the current situation and hence 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, Archyde.com reported that the Securities Exchange Board of India is conducting a thorough examination of the Adani Group’s share collapse. 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 10 listed Adani companies has declined 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 applications were received for FPO. But unexpected moves in the market on Wednesday prompted the Adani Group to withdraw the FPO.
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