Adani Enterprises scraps FPO amid group shares sink 28%

2 Feb 2023 , 09:24 AM

In the last 5 sessions, the market capitalization of all 10 listed Adani companies are down by Rs 7.5 lakh crore with shares of Adani enterprises falls around 50% from its 52 week high. Therefore, the chairman of Adani Enterprises, Guatam Adani has made an announcement to cancellation of the company’s follow-on public offering (FPO).

Adani stated that the board has decided that it would not have been morally correct to proceed with the FPO. He said, “For me, the interest of my investors is paramount and everything is secondary. Hence to insulate the investors from potential losses we have withdrawn the FPO.”

The decision to not to proceed with the FPO even after oversubscription was taken by the board committee of the company yesterday.

After FPO cancellation, the company will refund the proceeds received amid ongoing controversy after American short seller, Hindenburg Research, accused the company of using tax havens and flagged debt concerns in a report.

At the end of the day, Gautam Adani’s personal net worth was down $14 billion to $74.7 billion pushing him to No. 15 on the Forbes billionaire list – down from No. 3 barely days ago. All Adani Group stocks were down with Adani Ports falling 19.7%.