Adani Group calls off Rs 20,000 crore flagship FPO
The Adani Group held a meeting on Wednesday and decided to call off the Follow-on Public Offer (FPO) of equity shares aggregating up to Rs 20,000 crore of face value Rs 1 each on a partly paid-up basis, which was fully subscribed.
This follows after shares of Adani Group companies encountered a massive crash on Wednesday, triggering wild volatility in benchmark stock indices that went up after Finance Minister Nirmala Sithraman presented the Union Budget 2023.
Adani Enterprises, the flagship firm of the Adani Group, plunged 26.70 per cent, triggering panic on Dalal Street just a day after the company’s Rs 20,000 crore FPO sailed through successfully.
The Adani Group released a statement saying, “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,” the statement read.
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.”