Adani board cancels FPO:money to be returned to investors

Adani Enterprises has decided to withdraw its fully subscribed Rs 20,000-crore follow-on public offer (FPO) and will return the proceeds to investors. The announcement came on Wednesday after the company's FPO was subscribed fully on the last day of the offer on Tuesday.     "The Board of Adani Enterprises Ltd., (AEL) decided not to go ahead with the fully subscribed FPO. 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 Adani group's flagship company said in a statement.      As many as 4.62 crore shares were sought as against an offer of 4.55 crore.  Non-institutional investors put in bids for over three times the 96.16 lakh shares reserved for them, while the 1.28 crore shares reserved for qualified institutional buyers (QIBs) was almost fully subscribed, according to BSE data.There was, however, muted response from retail investors and company employees.

Gautam Adani, Chairman, Adani Enterprises Ltd said, the subscription for the FPO closed successfully on Tuesday. Despite the volatility in the stock over the last week, your faith and belief in the Company, its business and its management has been extremely reassuring and humbling. Thank you". Shares of the Adani Group firms had slumped after a report by US-based short seller Hindenburg Research which flagged concern about the group's high debt levels and its suspected improper use of tax havens. The report was released on January 24 -- the day the ₹ 20,000-crore follow-on share sale opened for anchor investors.Adani Enterprises has rejected the allegations. In a statement on Sunday, it said the conduct of the American firm "is nothing short of a calculated securities fraud under applicable law". "Hindenburg has not published this report for any altruistic reasons but purely out of selfish motives and in flagrant breach of applicable securities and foreign exchange laws," it said. "The report is neither 'independent' nor 'objective' nor 'well researched'."