Adani Enterprises To Return Money To Investors

Gujarat News, Gujarati News, Latest Gujarati News, Gujarat Breaking News, Gujarat Samachar.

Latest Gujarati News, Breaking News in Gujarati, Gujarat Samachar, ગુજરાતી સમાચાર, Gujarati News Live, Gujarati News Channel, Gujarati News Today, National Gujarati News, International Gujarati News, Sports Gujarati News, Exclusive Gujarati News, Coronavirus Gujarati News, Entertainment Gujarati News, Business Gujarati News, Technology Gujarati News, Automobile Gujarati News, Elections 2022 Gujarati News, Viral Social News in Gujarati, Indian Politics News in Gujarati, Gujarati News Headlines, World News In Gujarati, Cricket News In Gujarati

Adani Enterprises To Return Money To Investors

| Updated: February 2, 2023 15:10

Adani Enterprises has cancelled its Follow-On Public Offering (FPO) and will refund money to its investors. The decision comes in the midst of ongoing controversy after American short seller Hindenburg Research accused the firm of utilising tax havens and raised debt concerns in a report.

Adani Enterprises said in an exchange filing, “The Board of Directors of the Company at its meeting held 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 Rs 20,000 crore of face value Rs 1 each on partly paid-up basis, which was fully subscribed.”

The decision was made, according to Gautam Adani, Chairman of Adani Enterprises, in the midst of the swings that the group’s stocks experienced during the day’s trading.“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. Thank you,” Adani said in a press statement.

The company is working with its Book Running Lead Managers (BRLMs) to release the funds blocked into investors’ bank accounts for subscription to this issue as well as to repay the proceeds it received in escrow.

In response to news that Credit Suisse no longer accepts Adani firms’ bonds as collateral for margin loans, Adani Enterprises experienced a nearly 26 percent decline, closing at Rs 2,180.20 per share on the BSE. Adani Ports, different group stocks, too experienced a 20% decline in price and closed at Rs 492.15 per share. Ambuja Cements’ 16.56 percent drop to close at Rs 334.60 and ACC’s 5.96 percent drop to close at Rs 1,852 contributed to the group’s additional decline.

He added, “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.”

In US trade, the company’s bonds fell to distressed levels. Following a report by Hindenburg Research last week alleging stock manipulation and inappropriate use of offshore tax havens by the Adani Group, the shares of the group’s firms have continued to drop. The research company also expressed concern about the valuations of the seven listed Adani companies and their high debt levels.

The charges have been refuted by Adani Group, which claims that the short seller’s allegation of stock manipulation is unfounded and reflects a lack of legal knowledge. It said that it has always provided relevant regulatory disclosures. Due to a strong push from HNI investors on the final bidding day, the FPO, which ultimately received a 112 percent subscription, performed middling with retail investors. Gautam Adani further stated that the decision won’t affect the business’s ongoing operations in his statement.

Also Read: Morbi Bridge Collapse: Oreva Group’s MD In Police Custody

Your email address will not be published. Required fields are marked *