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Adani Enterprises calls off Rs 20K cr FPO, to return money to investors

  •   Thu, Feb 02 2023 09:25:46 AM

New Delhi, Feb 2 (IANS): Hours after its shares crashed at the bourses, the Adani Group on Wednesday evening decided to call off its Rs 20,000 crore follow-on public offer (FPO), saying that money would be returned to the investors.

The decision was taken after a meeting of the company's Board.

"The Board of Adani Enterprises Ltd decided not to go-ahead with the fully subscribed follow-on public offer (FPO). Given the unprecedented situation and the current market volatility, the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction," a statement issued by Adani Enterprises said on Wednesday.

Adani Group Chairman Gautam Adani said, "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, however, added that on Wednesday, the market was unprecedented, and "our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the companya's Board felt that going ahead with the issue would not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO".

 

 
  

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Comment on this article

  • Asif, Dubai

    Thu, Feb 02 2023

    Adani is turn out to be sinking boat for duo Feku, Tadipar and for the party.

    DisAgree [1] Agree [11] Reply Report Abuse

  • Alfria, Manglore/Mumbai

    Thu, Feb 02 2023

    Bogus company fraud people cheated poor investors of their money, waiting to see what will the retail investors do when adani stocks hit the 52 week lower target.

    DisAgree Agree [8] Reply Report Abuse

  • John, Mangalore

    Thu, Feb 02 2023

    bjp to recommend bharat rathna to adani

    DisAgree [1] Agree [10] Reply Report Abuse

  • Raj, Mangalore

    Thu, Feb 02 2023

    The real culprit is the BJP. BJP turned over public assets like the Mangalore airport to Adani. Adani raised airport fees to fund the BJP' s campaign warchest. The

    DisAgree [1] Agree [18] Reply Report Abuse

  • Amith, udupi

    Thu, Feb 02 2023

    Amrit Kaal du popikaal for Adani

    DisAgree [1] Agree [15] Reply Report Abuse

  • Nawaz, Udupi/ Kuwait

    Thu, Feb 02 2023

    The reason for fall of Adani FPO are as following: 1. The company whose 85 % of worth is attained in the last just 3 years; and remaining 15 % in the previous 30+ years. 2. The Mega group of companies owned by 3rd richest person; and the accounts are handled by a such a goodangadi Chartered Accounting firm that has about 4 permanent employees (aged below 30 years) 3. The company which has its executives (brother & relatives of Adani) arrested previously for frauds. 4. The company which has its such a small portion of share capital open to retail investors in the market (Very high % is held by Promoters and Close relatives) that the share prices can be easily manipulated. 5. The Company which has the shell investors from Mauritius who has no history of investing in any other firms other than Adani 6. The company unhealthy asset/ debt ratio 7. The unhealthy sign of financial stability where the company has pledged its shares to get loans from the market.

    DisAgree [2] Agree [13] Reply Report Abuse

  • myna, mysuru

    Thu, Feb 02 2023

    Good decision. The Public sector banks and LIC are saved. So are the investors in these public sector undertakings. God Save the poor investors.

    DisAgree [1] Agree [7] Reply Report Abuse

  • Nawaz, Udupi/ Kuwait

    Thu, Feb 02 2023

    @Myna, LIC and Public Sector banks have already incurred HEAVY LOSSES owing to nosediving Adani Shares; as they are already invested even before the FPO. I believe LIC has more than 4 % in Adani shares (not sure)

    DisAgree [1] Agree [6] Reply Report Abuse

  • Rajan, Mangalore

    Thu, Feb 02 2023

    FINANCE MINISTER SHOULD HAVE RESIGNED -- WHATEVER BUDGET IS ANNOUNCED --SWALLOWED BY FRAUDS -- ADANI etc -- 40 % in karnataka -- other states --what is Income tax dept -- ED all doing ------ coming under FM --- LIC investments --SBI -- A biggest fraud issue FPO of Adani would have sailed thru ' if it was not scrutinised by a US based firm -- initially all tactics were used nationalism etc -- everything now exposed -- The best part was this company close associate of ruling dispensation -- who talks of -- na khaunga na khane dunga --- FOR OPPOSITION all small amounts ED -- CBI -- IT raids -- Strangely no action here for billions of dollars -- as alleged all kinds of money transfers have happened -- hawala etc etc -- round tripping -- manipulations --

    DisAgree [5] Agree [19] Reply Report Abuse

  • Kedhar, Mangaluru

    Thu, Feb 02 2023

    What a shame! What a Scam! LIC money in fraudster company!This fellow will swim, but will drown others... Investors beware!!

    DisAgree [4] Agree [29] Reply Report Abuse

  • prakash, Manipal

    Thu, Feb 02 2023

    Credibility of adani group is at the lowest amid their cunning ways to reach stars.... It is a pity that stalwart horses in govt control like LIC and SBI were forced to invest in one of the biggest con games in the history of the world.... His meteoric rise would never have been possible without the blessings of political bosses.... Adamant that still the group was made a impossible to believe claim that FPO was a success only to find stocks plummet close to 30% the very next day of issue closure... Stocks manipulation acts can never be more evident... It is a wonder why there is no statutory action on the group even now???!!!...

    DisAgree [3] Agree [26] Reply Report Abuse

  • Abdul, dubai

    Thu, Feb 02 2023

    In conclusion, we need firangs (foreigners) to point us to the truth regarding the state of affairs of our country, be it with the Hindenburg report on Adani, or the latest BBC documentary ....BJP has been very effective to turning most of us into blind bkakths...lol 🤫

    DisAgree [6] Agree [31] Reply Report Abuse

  • Aam Aadmi, Ihaloka

    Thu, Feb 02 2023

    Except Ambuja Cement and ACC, all remaining 8 shares of Adani group in downward circuit again now.

    DisAgree [1] Agree [22] Reply Report Abuse

  • Mangalurian, Mangaluru

    Thu, Feb 02 2023

    Abu Dhabi Investment Authority, a major investor, must have started shivering! Naturally when they demand the return of their money, there is no other way. Trouble for India is that this can start a whole cycle of losing confidence by the investors - both foreign and local. Could Sithamma have waited a little longer for the budget release?

    DisAgree [5] Agree [24] Reply Report Abuse

  • Monty Dotor, Mangalore

    Thu, Feb 02 2023

    Most of the so-called "Investment Companies " abroad are proxy firms that are used by politicians here for parking their ill-gotten wealth...

    DisAgree Agree [13] Reply Report Abuse

  • Mbeary, Dxb

    Thu, Feb 02 2023

    This itself is a scam. Will he return the money the public bought the shares at or at the current market price?!!!! 1000 rs clean profit for adani per share

    DisAgree [5] Agree [20] Reply Report Abuse

  • Nawaz, Udupi/ Kuwait

    Thu, Feb 02 2023

    @Mbeary, The investors bought the shares at FPO price (higher than the current market price) and not at the open current market price. So, it is not a profit for the company. It is a loss for Adani when he called off the FPO. But one more point to be noted regarding the FPO subscription is that the FPO was subscribed at the last moment of the last day; even when the shares were available at lower price in the open market. Why the investors choose to buy shares at higher price when it was available at the lower price in the open market? Doesn't it indicate at one more manipulation that took place to show that FPO was fully subscribed?

    DisAgree [1] Agree [13] Reply Report Abuse


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Title: Adani Enterprises calls off Rs 20K cr FPO, to return money to investors



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