Winning Bizness Desk
Mumbai. Reserve Bank of India has taken a big step amid Hindenburg's report on Adani Group. According to the news agency Reuters, the Reserve Bank of India (RBI) has issued instructions to all the banks in the country asking for information about loans given to Adani Group. Actually, American firm Hindenburg has recently released a report regarding Adani Group. In his report, Hindenburg accused Adani Group of market manipulation and account fraud. After this report came out, there has been a huge fall in the shares of Adani Group. However, the Gautam Adani-led Adani Group called the allegations baseless and misleading. He claimed that the public was misled in this report.
Adani Group withdraws FPO
Adani Group canceled its FPO amid the Hindenburg report and a steep fall in shares. It was said on behalf of Adani Group that in view of the fluctuations in the market, the board of the company has decided to cancel the FPO. The objective of the company is to protect the interests of its investors. That's why we are going to return the amount received from FPO and end the transaction related to it. This FPO for Rs 20,000 crore was opened for subscription on January 27 and was closed on January 31 after being fully subscribed. It is important to understand what is Follow on Public Offer (FPO). Actually, there is a way for a company to raise money. The company which is already listed in the stock market, offers new shares to the investors. These shares are different from the shares present in the market.
Why was the FPO closed?
Gautam Adani himself came forward on Thursday and told the investors the reason for withdrawing the FPO. He said that the aim of the company is to protect the interests of its investors in view of the ups and downs in the stock market. That's why we are going to return the amount received from FPO and end the transaction related to it. Gautam Adani said that for me the interest of my investors is paramount. Therefore, to protect investors from possible losses, we have withdrawn the FPO. This decision will have no impact on our current operations and future plans.
