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According to BSC data, Rs 4.55 crore was offered under the Adani Enterprises FPO, while applications for Rs 4.62 crore were received. Bids for 96.16 lakh shares reserved for non-institutional investors were received almost three times.
New Delhi. Adani Enterprises announced on Wednesday the withdrawal of its Rs 20,000 crore follow-on public offering (FPO) and the return of investors’ money. However, the company’s FPO was fully subscribed on Tuesday. Adani Enterprises is understood to have taken this step following a report from US short selling company Hindenburg. According to BSC data, Rs 4.55 crore was offered under the Adani Enterprises FPO, while applications for Rs 4.62 crore were received. Bids for 96.16 lakh shares reserved for non-institutional investors were received almost three times.
While Rs 1.28 crore from eligible institutional buyers segment subscribed in full. However, the response to the FPO was lukewarm from retail investors and company employees. Gautam Adani, Chairman of Adani Enterprises Ltd, said: “The FPO closed successfully on Tuesday, despite high volatility in the company’s shares last week. Your trust in the company and your business is our confidence booster for which we are grateful.” Adani said that there were unexpected fluctuations in the company’s stock today. “In view of the extraordinary circumstances, the company’s board of directors has decided that it would be unethical to proceed with the FPO.
The interest of investors is of the utmost importance to us and to protect them from any possible loss, the Board of Directors has decided to withdraw the FPO.” Following the ‘Hindenburg Research’ report last week, shares of Adani group companies are falling continuously. This downward trend also continued on Wednesday. The collective market capitalization of the group companies has decreased by Rs 7 lakh crore in the last five trading sessions.
Disclaimer:Prabhasakshi has not edited this news. This news has been published from PTI-language feed.
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