Against the offer of 4.55 crore, 4.62 crore shares were called for. , Photo Credit: PTI
Shares of Adani Enterprises plunged 15% in morning trade on February 2, a day after the firm said it has decided Not going ahead with Rs 20,000 crore follow-on public offer (FPO) and return the proceeds to investors.
The stock fell 15% to ₹1,809.40 on the BSE.
Other group firms also declined for the sixth day in a row, with Adani Ports down 14%, Adani Transmission 10%, Adani Green Energy (10%), Adani Total Gas (10%), Adani Wilmar (10%) Stayed 5%), NDTV (4.99%) and Adani Power (4.98%).
Many of the group firms also crossed their lower circuit limits in early trade.
However, Ambuja Cements shares gained 9.68% and ACC 7.78% in morning trade.
Adani Group stocks took a beating Exchanges in recent days Hindenburg Research The Gautam Adani-led group made several allegations in its report, including fraudulent transactions and manipulation of share prices.
The Adani Group has dismissed the allegations as false, adding that it complies with all laws and disclosure requirements.
“The Board of Adani Enterprises Limited, [AEL] Decided not to go ahead with the fully subscribed FPO. In view of the unprecedented situation and the current market volatility, the company aims to protect the interest of its investment community by repatriating the FPO proceeds and taking back completed transactions, the company said in a statement on Wednesday.
Against the offer of 4.55 crore, 4.62 crore shares were called for.
Non-institutional investors bid more than three times the 96.16 lakh shares reserved for them, while the 1.28 crore shares reserved for qualified institutional buyers (QIBs) were almost fully subscribed, according to BSE data.
However, there was a muted response from retail investors and company employees.
Retail investors, for whom nearly half the issue was reserved, bid for only 11% of the 2.29 crore shares earmarked for them. The employees demanded 52% of the 1.6 lakh shares reserved for them.
Adani Group flagship company Adani Enterprises had a weak start to its FPO, with only 1% subscription on the first day of the share sale. The offer was open for public subscription from January 27-31.
30-Share BSE Benchmark Sensex 118.87 points to close at 59,826.95.