https://sputniknews.in/20230202/adani-enterprises-cancels-244bln-stock-sale-724536.html
Adani Enterprises Cancels $2.44Bln Stock Sale
Adani Enterprises Cancels $2.44Bln Stock Sale
Indian company Adani Enterprises announced on Wednesday that it has canceled a 200 billion rupees ($2.44 billion) stock sale due to an unprecedented situation and market volatility
2023-02-02T11:40+0530
2023-02-02T11:40+0530
2023-02-03T12:12+0530
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The company announced the FPO last year and has submitted documents to the Securities and Exchange Board of India for a 200 billion rupees additional offering of shares, the largest in the history of India. "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," the company said in a statement on the website. "The Board takes this opportunity to thank all the investors for your support and commitment to our FPO [follow on public offer].... Today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the Company’s board felt that going ahead with the issue would not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO," Adani said in the statement. The chairman added that the company is working "with our Book Running Lead Managers (BRLMs) to refund the proceeds received by us in escrow and to also release the amounts blocked in your bank accounts for subscription to this issue." Shares of Adani Enterprises plunged 26.7% to 2,179.75 rupees per share a day after its pre-subscription offering closed for the subscription. The decline was spurred by a report by US company Hindenburg Research, published last week, accusing the Indian company of offshore tax havens, stock manipulation, and accounting fraud. Following the report, Adani Group's total capitalization fell by 7.44 trillion rupees to 11.76 trillion rupees as of January 24, and the company's chairman, Gautam Adani, dropped down from third to fifteenth place on Forbes' list of the world's richest people with his net worth estimated at $74.7 billion.
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adani enterprises, gautam adani, the chairman of adani enterprises, adani losses, india's richest person, wealthiest man in asia
Adani Enterprises Cancels $2.44Bln Stock Sale
11:40 02.02.2023 (Updated: 12:12 03.02.2023) MOSCOW (Sputnik) - Indian company Adani Enterprises announced on Wednesday that it has canceled a 200 billion rupees ($2.44 billion) stock sale due to an unprecedented situation and market volatility the next day new shares were put on offer under the Follow-on Public Offer (FPO).
The company announced the FPO last year and has submitted documents to the Securities and Exchange Board of India for a 200 billion rupees additional offering of shares, the largest in the history of India.
"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," the company said in a statement on the website.
Gautam Adani, the chairman of Adani Enterprises and one of the richest people in India, thanked investors for their support, saying that the company's board felt that going ahead with the stock sale would not be "morally correct."
"The Board takes this opportunity to thank all the investors for your support and commitment to our FPO [follow on public offer].... Today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the Company’s board felt that going ahead with the issue would not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO," Adani said in the statement.
The chairman added that the company is working "with our Book Running Lead Managers (BRLMs) to refund the proceeds received by us in escrow and to also release the amounts blocked in your bank accounts for subscription to this issue."
Shares of Adani Enterprises plunged 26.7% to 2,179.75 rupees per share a day after its pre-subscription offering closed for the subscription. The decline was spurred by a report by US company Hindenburg Research, published last week, accusing the Indian company of offshore tax havens, stock manipulation, and accounting fraud.
Adani Enterprises slammed the report as "a malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India’s highest courts," and said that "the report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares."
Following the report, Adani Group's total capitalization fell by 7.44 trillion rupees to 11.76 trillion rupees as of January 24, and the company's chairman, Gautam Adani, dropped down from third to fifteenth place on Forbes' list of the world's richest people with his net worth estimated at $74.7 billion.
