In the latest developments, Adani Enterprises has reportedly called off its follow on public offering (FPO) on February 1 and will give back the money to investors, amid the ongoing controversy. The conglomerate’s stocks have taken a severe beating after accusations of stock manipulation and money laundering emerged from the Hindenburg report.
“The board of directors of the company at its meeting today i.e. February 1, 2023, has decided, in the interest of its subscribers, not to proceed with the further public offer (FPO) of equity shares aggregating up to 20,000 crore rupees of face value 1 rupee each on partly paid-up basis, which was fully subscribed,” the organisation said during an exchange filing.
The Chairman of Adani Enterprises, Gautam Adani, declared that the decision was taken in the middle of stock fluctuations during yesterday’s trading window, according to the report.
“The board takes this opportunity to thank all the investors for their 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,” said Adani in a press statement.
He further stated, “However, today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the company’s board felt that going ahead with the issue will 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.”