Adani Group has cancelled its Follow-On Public Offering (FPO) for Adani Enterprises following yet another day of losses for all of its group shares.
Despite a lack of interest since the publication of the damning Hindenburg Research, which claimed that the company was engaged in a number of fraudulent activities, including stock market manipulation, the use of several shell companies, and numerous related party loans, the FPO was oversubscribed on the final day on Tuesday.
Adani Group stated in an exchange statement that it will reimburse its investors for their money.
Adani Enterprises lost 28.2 percent of its value on the Bombay Stock Exchange (BSE) to settle at IR2,128 ($26.11), according to allegations that Credit Suisse no longer accepts the bonds of Adani companies as collateral for margin lending.
The share price is currently significantly lower than the FPO’s offer price. The price range for the shares being sold by the company was IR3,112-3,276 ($38-$40).
Adani Ports, a different group company, finished at IR492.15 ($6.01) by hitting the 20 percent lower circuit. At the market closing, Ambuja Cements fell 16.56 percent to IR334.60 ($4.08).
Bids were received for 5,08,68,352 new shares, or 112%, of the 4,55,06,791 fresh shares on offer. Retail investors’ interest in the FPO was low, but institutions and High Net Worth Individuals more than made up for it.
According to Bloomberg, a number of companies and people, including Sajjan Jindal and Sunil Mittal of the Bharti Group, subscribed to the follow-on offering in a last-minute rush.
In response, Adani Group has called Hindenburg’s accusations false and insisted that it complies with all legal and disclosure requirements. It criticised the claim as being unfounded and threatened to sue the business.
