A day after Adani Group took the call to scrap its 20,000 crore follow-on public offer (FPO) and return the money to the investors. Adani Group Chairman stated explained the move and stated
“interest of his investors was paramount and everything else is secondary”.
In a video message , Gautam Adani stated that the group will review the capital raising plans, once the situation stabilizes
“In my humble journey of over 4 decades as an entrepreneur, I have been blessed to receive overwhelming support from all stakeholders particularly the investor community. It is important for me to confess that whatever little I have achieved in life is due to the faith and trust reposed by them. I owe all my success to them. For me, the interest of my investors is paramount and everything else is secondary. Hence to insulate the investors from potential losses we have withdrawn the FPO,”
Further stated,
“Once the market stabilizes, we’ll review our capital market strategy. We have a strong focus on ESG and every business of ours will continue to create value in a responsible way. The strongest validation of our governance principles, comes from our several international partnerships.”
Follow-on-public offering (FPO) by Adani Enterprises Ltd (AEL) was India’s biggest such issue, amid a meltdown in its stock that has soured investor sentiment.
Also Read: Indian Railway update: 55 partially and 355 fully cancelled trains today, list here
FPO scrapping justification from Adani Enterprises Limited (AEL)
Top brass of Adani Enterprises Limited (AEL) have stated that it would be unfair to its supporters to be burdened with its offer price amid a 28.4% plunge and a cumulative 38.2% fall over last five sessions.
Since FPO consisted of partly paid shares , investors paid only 50% of the offer price (Rs 1638 per share) upfront , with remaining to be paid at later date. Since 2016 , only two other companies have withdrawn IPO’s of FPO’s.
Why Adani FPO was scrapped? Is it a moral high ground or poor response from retail investors
Overwhelming support from high networth investors ensured India’s biggest follow-on public offering (FPO) , the Rs 20,000 crore Adani Enterprises (AEL) issue, achieved full subscription on the last day of bidding. However there was a tepid response from retail investors and employees.
According to Bloomberg ,even Swiss bank Credit Suisse Group AG reportedly stopped “accepting bonds of Adani Group entities as collateral for margin loans to its private banking clients.
Free fall of Net Worth continues for India’s Business Titan
It has been a week of stock crash mayhem for Adani Group Chairman Gautam Adani his personal net worth has gone down from $ 74.7 billion to $14 billion , pushing him to 15 on Forbes billionaire list – down from No.3 barely days ago. All Adani group was down Adani Ports falling 19.7%.
Also Read: Air Marshal AP Singh takes over as new IAF vice chief
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.
 and return the money to the investors.){kind=link}