31 March Friday

Adani Group Withdraws Share Sale of Its Flagship Firm Adani Enterprises

Web Desk (Tvm)Updated: Thursday Feb 2, 2023

New Delhi : The Adani group flagship firm, Adani Enterprises, on Thursday announced it has canceled the Follow-on Public Offering(FPO) and will refund money to its investors.  The withdrawal comes over ongoing row relating to  alleged stock manipulation and accounting fraud, flagged by New York-based investors research firm Hindenburg. Being canceled is equity share sale aggregating up to Rs 20,000 crore of face value of Rs 1 each on partly paid-up basis.

On Wednesday alone, the Adani Enterprises  shares fell a 28 percent on Dalal Street.  Shares of other Adani companies such as Adani Port too witnessed sharp decline. With all the Group’s shares plunging, chances of a rebound anytime soon appears bleak.

The Group, in a statement,  announced it will refund money to the FPO subscribers. There is a difference now of close to Rs.1,500 between the FPO  price and the current share price on the index. The Group said the refund is meant to insulate investors from further losses.

Post the Hindenburg Research report, the fall in  Adani Group  shares has so far exceeded  Rs 7.5 lakh crore.