Adani Enterprises Cancels Fully Subscribed FPO Amid Market Volatility

Adani Enterprises has decided not to proceed with its fully subscribed Follow-on Public Offer (FPO) due to market volatility and “the unprecedented situation”. The company attributed its abrupt decision to a need to protect its investors by returning their proceeds. Despite the ₹20,000-crore share sale sailing through on the last day on Tuesday after non-retail investors bid in big volumes, all the group companies settled in negative territory with shares of three companies hitting their lowest price band. The counter of Adani Ports and Special Economic Zone plunged 19.69%, Adani Total Gas slumped 10%, Adani Green Energy declined 5.78%, Adani Wilmar fell 4.99%, Adani Wilmar went down 4.99%, Adani Power dropped 4.98% and Adani Transmission (2.46%). The decision will not have any impact on the existing operations and future plans of the company. SEBI is undertaking a full-scale examination of the fall in shares and looking into any possible irregularities in a share sale by the flagship company of the group. India’s benchmark Nifty index has fallen 2.7% since the Hindenburg report.