Billionaire Gautam Adani-led Adani Enterprises on Wednesday decided to scrap the 'follow-on share sale' or 'FPO' process. The company announced that it will return the money to the investors who bid.
On Tuesday, the company was able to pull off this share sale, which raised INR 20,000 crore, the largest ever in the history of the country's capital market through FPO, even in adverse market conditions. In the meeting of the board of directors of the company held on Wednesday evening, it was decided to wind up the 'FPO'.
"In view of the unprecedented situation and the current market volatility, we are withdrawing the completed transaction by returning the funds raised from the FPO. The company's objective is to protect the interests of the investor community involved in the process," the company said in a press release.
Referring to the unprecedented drop in the share price, Gautam Adani, chairman of Adani Enterprises, said that the board "felt that it would not be ethical to go ahead with the FPO process in these extraordinary circumstances."
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Meanwhile, in the wake of allegations made in the Hindenburg report, shares of Adani group companies continued to fall on Wednesday. Adani Enterprises tumbled over 28 percent, while Adani Ports tumbled over 19 percent. Adani Group has lost over INR 7 lakh crore in market capitalization in the last five sessions.
The protection of the interests of the investors is the highest priority. The Board of Directors took this decision to protect them from any possible financial loss, said Gautam Adani.
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