Adani Enterprises FPO cancelled, FPO back: Why did Gautam Adani take such a big U-turn in life? – gautam adani on canceled adani enterprises fpo citing morality
New Delhi: After the report of America’s shortselling company Hindenburg Research, Gautam Adani has taken an unexpected decision. He has decided to withdraw the Rs 20,000 crore FPO of his flagship company Adani Enterprises. Although the FPO of the company was fully subscribed. Adani Group is believed to have taken this step after Hindenburg’s report. The report of Hindenburg Research came out last Wednesday and since then Adani Group companies are witnessing a steep decline. The market cap of the group has decreased by about $ 90 billion. Also, Adani’s net worth has declined by $ 48.5 billion and he has slipped to number 13 in the list of the world’s richest. Meanwhile, Adani himself has given the reason for withdrawing this FPO.
Adani said in a statement that the FPO closed successfully on Tuesday despite significant volatility in the company’s stock last week. Your trust in the company and its business is our confidence booster for which we are grateful to you. There were unexpected fluctuations in the company’s stock on Wednesday as well. In view of the extraordinary circumstances, the Board of the Company has decided that it would not be ethically sound to go ahead with the FPO. The interest of the investors is of utmost importance to us and to save them from any possible loss, the Board has decided to withdraw the FPO. Adani Group Chairman said, ‘Many people must be wondering at this decision why it was withdrawn despite being fully subscribed. But after yesterday’s volatility in the market, the board felt that it would not be ethically correct to go ahead with this FPO. In my journey of four decades as an entrepreneur, I have received immense support especially from investors. Whatever I have achieved in life is because of the trust of the investors. My success is because of him. For me, the interest of the investors is paramount and everything else comes later. Therefore, to protect investors from possible losses, we have decided to withdraw the FPO.
According to BSC data, 4.55 crore shares were offered under this FPO, while it received applications for 4.62 crore shares. 96.16 lakh shares reserved for non-institutional investor category also received full bids. Whereas the Qualified Investor Buyers category was also fully subscribed. However, the response to the FPO was lukewarm from retail investors and employees.
