Adani Group shares nosedive again, day after scrapping of FPO

New Delhi: The shares of Adani Group of companies continued to plunge on Wednesday, a day after it announced scrapping of the Rs 20,000 crore FPO of Adani Enterprises and said that it would refund the money to the investors.
While shares of Adani Enterprises were down 8 per cent, the shares of Adani Transmission, Adani Green Energy and Adani Total had fallen 10 per cent. While Adani Ports was down 2.7 per cent, Adani Power and Adani Wilmar were down 8.3 per cent and 5 per cent respectively.
Meanwhile, Ambuja Cements and ACC were trading in the green and were up by 5.6 per cent and 0.7 per cent respectively.
The sharp decline in the shares of the group led to further erosion in the net worth of Gautam Adani and as of Thursday noon, he had slipped to the 16th spot in the Forbes billionaire list with a net worth of $69.2 billion. —Agencies
Ahead of the market opening on Thursday, Gautam Adani, through a video statement, had said that the FPO withdrawal decision was taken considering the volatility in the market. “The board strongly felt that it would not be morally correct to proceed with the FPO…. For me, the interest of my investors is paramount and everything is secondary. Hence to insulate the investors from potential losses we have withdrawn the FPO,” Adani said.
He added that the decision will not have any impact on the group’s existing operations and future plans. “The fundamentals of our company are strong. Our balance sheet is healthy and assets, robust. Our EBIDTA levels and cash flows have been very strong and we have an impeccable track record of fulfilling our debt obligations. We will continue to focus on long term value creation and growth will be managed by internal accruals. Once the market stabilizes, we will review our capital market strategy,” he informed.


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