Gautam Adani’s U-turn did not go down well with the market, Adani Enterprises shares fell by 15%
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New Delhi : The domestic stock market did not go down well with Gautam Adani’s U-turn on Adani Enterprises’ FPO (follow-on public offering) amid the ruckus created after the report of the American financial research institute Hindenburg Research. According to media reports, Adani Enterprises shares fell 15 per cent in early trade on Thursday. A day before this, on Wednesday, the company announced the withdrawal of its Rs 20,000 crore follow-on public offering (FPO) and return of investors’ money. However, the FPO of the company was fully subscribed on Tuesday.
Shares of Adani Group companies fell for the sixth consecutive day
According to media reports, Adani Enterprises shares fell 15 per cent to Rs 1,809.40 on the BSE (Bombay Stock Exchange). Apart from this, the performance of other Adani group companies also remained weak for the sixth consecutive day. As per the report, Adani Ports stock fell 14 per cent, along with it, Adani Transmission 10 per cent, Adani Green Energy 10 per cent, Adani Total Gas 10 per cent, Adani Wilmar 5 per cent, NDTV 4.99 per cent and Adani Power registered a decline of 4.98 per cent. However, Ambuja Cements gained 9.68 per cent and ACC gained 7.78 per cent.
FPO of Adani Enterprises withdrawn
Amidst uproar from both sides over the Hindenburg Research report, Adani Enterprises said in a statement on Wednesday that in view of the extraordinary circumstances, the company’s board has decided that it would not be ethical to go ahead with the FPO. The interest of the investors is of paramount importance to us and to save them from any possible loss, the Board of Directors has decided to withdraw the FPO.
Chairman @gautam_adani‘s address to investors after withdrawal of the fully subscribed AEL FPO#GrowthWithGoodness #NationBuilding #AdaniGroup pic.twitter.com/f9yaYrxCzx
— Adani Group (@AdaniOnline) February 2, 2023
Retail investor response to FPO is lukewarm
According to BSC data, 4.55 crore shares were offered under the FPO of Adani Enterprises, while applications were received for 4.62 crore shares. Nearly three times the bids were received for 96.16 lakh shares reserved for non-institutional investors. At the same time, 1.28 crore shares of the eligible institutional buyers’ segment were fully subscribed. However, the response to the FPO was lukewarm from retail investors and company employees.
Gautam Adani thanked the investors
Announcing the return of the FPO, Gautam Adani, chairman of Adani Enterprises Ltd, had said on Wednesday that the FPO was successfully closed on Tuesday, despite high 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. Adani said that today there were unexpected ups and downs in the company’s stock. He said that in view of the extraordinary circumstances, the board of directors 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 paramount importance to us and to save them from any possible loss, the Board of Directors has decided to withdraw the FPO.
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