Adani Enterprises calls off FPO, says will return money to investors

Adani Enterprises has decided to call off its FPO (Follow-On Public Offering) and it will return the entire Rs 20,000 crore to the investors. The decision comes after the company's shares fell around 30 per cent on Wednesday.

"Board of Directors of the Company at its meeting held today decided in the interest of its subscribers, not to proceed with the FPO of equity shares aggregating up to Rs 20,000 Cr of face value Rs 1 each on partly paid-up basis, which was fully subscribed," Adani Enterprises said in a statement.

Board of Directors of the Company at its meeting held today decided in the interest of its subscribers, not to proceed with the FPO of equity shares aggregating up to Rs 20,000 Cr of face value Rs 1 each on partly paid-up basis, which was fully subscribed: Adani enterprises pic.twitter.com/08Wrknkk6k

— ANI (@ANI) February 1, 2023

Recently, American short seller, Hindenburg Research, accused the company of using tax havens and flagged debt concerns in its report. The Rs 20,000 crore worth FPO was fully subscribed a day ago.

"Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction," Adani Group said in its official release.

READ | Fraud cannot be obfuscated by nationalism: Hindenburg rebuttal on Adani Group's response