Adani Enterprises on Wednesday called off its fully-subscribed Rs 20,000 crore follow-on public offer (FPO), amid the row over the Hindenburg Research report. The company said that the FPO stands withdrawn “given the unprecedented situation and the current market volatility” and all proceeds would be returned to investors.
The FPO, which opened for subscription for public shareholders on January 27 and closed on January 31, managed to get full subscription primarily due to bidding on the last day of the issue.
The FPO had been marred by a damning report by the US-based short seller that alleged the conglomerate was involved in brazen stock manipulation and accounting fraud over the course of decades.
Here’s a timeline of the events leading to the withdrawal of the FPO amid the controversy over the Hindenburg report:
January 24: Hindenburg released its research report on the Adani Group. The report claimed to be based on research spanning over two years, alleged that Adani Enterprises and other group companies were "engaged in a stock manipulation and accounting fraud over the course of decades".
January 25: After the release of the Hindenburg report, Adani Group entities faced a sharp correction in the stock market, eroding close to Rs 1 lakh crore in market capitalisation.
January 25: Adani Group in a statement refutes the charges, saying that it is considering legal options to take "punitive action against Hindenburg. The group also reiterated that they are confident of the FPO seeing full subscription.
January 26: Hindenburg Research issues a statement saying that it stands by its report as the Adani group did not answer any of the 88 straightforward questions.
January 29: Adani group releases a 413-page statement, calls the Hindenburg report a "calculated attack" on India, and terms allegations as "nothing but a lie".
January 30: Hindenburg rejects the 413-page response, says fraud cannot be obfuscated by nationalism.
January 30: Adani gets the support of Abu Dhabi's International Holding Co which invests $ 400 million in FPO.
January 31: Adani Enterprises FPO is fully subscribed.
February 1: Bloomberg reported that Credit Suisse's private bank halted margin loans on Adani Bonds. The Swiss lender’s private banking arm assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy, and Adani Electricity Mumbai Ltd. added the Bloomberg report quoting sources.
February 1: Reuters reported that the market regulator, Securities and Exchange Board of India (SEBI), has launched a probe into the $86 billion wipeout of Adani Group stocks.
