Wednesday, June 19, 2024

Adani group calls off FPO, money to be returned to investors

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Bengaluru: As it’s stocks plunged with flagship Adani Enterprises dropped by 28%,  Adani Group late Wednesday night decided to call off its 20,000 crore Follow on Public Offer (FPO} in a rare move amidst the growing impact of the Hindenburg report raising allegations of “stock manipulation and accounting fraud.”  

The company in a statement issued said that it will return money to its investors. It said that the decision to cancel the offer was taken in the interests of its subscribers.Gautam Adani, Chairman, Adani Enterprises said that the decision was taken amid the fluctuations the group’s stocks saw during the day’s trading.Billionaire Gautam Adani lost his title as Asia’s richest person on Wednesday as his conglomerate plunged again in the wake of a US short-seller report.

It comes just a day after the group managed to muster support from investors for a $2.5 billion share sale for flagship firm Adani Enterprises on Tuesday, in what many saw as a stamp of investor confidence.The report by Hindenburg Research last week alleged improper use by the Adani Group of offshore tax havens and stock manipulation.

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