Looks like the Hidenburg Research report findings have hit Adani group hard. The report had opened a pandora's box for Adani after Adani Group was accised of brazen stock manipulation and accounting fraud. Following this expose, Adani group stocks plunged to an all time low.

Now, in a latest development, the Adani Enterprises Group (AEL) announced their decision to cancel the Rs 20K crore FPO last evening.

However, AEL assured investors that the company stands by them and the proceeds received towards the follow-on Public Offer will be refunded to the investors.

Business analysts say that this sudden decision may have been majorly influenced by the meltdown of Adani Group Stocks and bonds. Meanwhile Gautam Adani slipped to the 15th position on the Forbes Billionaires list as his net worth dipped by $14 billion to $74.7billion.

Given the market volatility and the unprecedented situation, the Adani group decided to withdraw the completed FPO transaction.

AEL Chairman Gautam Adani stated thus...

“The subscription for the FPO closed successfully yesterday. Despite the volatility in the stock over the last week, your faith and belief in the Company, its business and its management has been extremely reassuring and humbling. Thank you.

“However, today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the Company’s board felt that going ahead with the issue will not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO.”

Read Adani Group Full statement here