Why did Adani Group withdraw 20,000 crore FPO? Gautam Adani himself told the reason

Adani Group Chairman Gautam Adani Group on Wednesday withdrew the Rs 20,000 crore follow-on public offer (FPO) of its flagship company Adani Enterprises. This decision of Adani surprised everyone. The question was arising in the minds of the people that why did they withdraw the FPO. Now Gautam Adani himself has come forward and explained to the investors and also given the reason for withdrawing the FPO. Explain that this FPO for Rs 20,000 crore was opened for subscription on January 27 and was closed on January 31 after being fully subscribed.

FPO withdrawn for this reason

Gautam Adani said that the decision to withdraw it on Tuesday after a fully subscribed FPO must have surprised many. But considering the volatility of the market yesterday, the Board felt that it would not be ethical to go ahead with the FPO. Along with this, he said that in view of the movement in the stock market and the ups and downs in the market, the aim of the company is to protect the interests of its investors. For this reason, we are going to refund the amount received from the FPO and cancel the transaction related to it.

Interest of investors paramount

Gautam Adani said that the interest of his investors is paramount for him. This FPO has been withdrawn only to protect investors from possible losses. He added that this decision will not have any impact on their current operations and future plans. He said, “In my humble journey of over 4 decades as an entrepreneur, I have received overwhelming support from all stakeholders, especially the investor community. It is important for me to acknowledge that whatever little bit I have achieved in life is because of their faith and trust. I give the credit of all my success to him.

What is FPO?

Explain that follow-on public offer (FPO) is also known as secondary offering. It is a process under which a company listed on the stock exchanges issues new shares to existing shareholders as well as new investors. Let us tell you that the stock of Adani Enterprises fell 28.5% to close at Rs 2,128.70 on Wednesday.