Adani pulls the plug on Rs 20,000 crore FPO, cites investor interest
By Vipin Vijayan | First Published Feb 1, 2023, 10:43 PM ISTWhile informing about the Board's decision not to go ahead with the FPO, the company said that it aims to protect the interest of its investing community by returning the FPO proceeds and withdrawing the completed transaction.
Adani Enterprises Limited has pulled the plug on the fully-subscribed Follow-on Public Offer (FPO), citing an unprecedented situation and the current market volatility.
While informing about the Board's decision not to go ahead with the FPO, the company said that it aims to protect the interest of its investing community by returning the FPO proceeds and withdrawing the completed transaction.
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Gautam Adani, Chairman of Adani Enterprises Limited, said, "The Board takes this opportunity to thank all the investors for your support and commitment to our FPO. The subscription for the FPO closed successfully yesterday (Monday). Despite the volatility in the stock over the last week, your faith and belief in the company, its business and its management have been extremely reassuring and humbling."
"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 would 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," Adani further said.
Adani said that the company was working with Book Running Lead Managers (BRLMs) to refund the proceeds received by them in escrow and to also release the amounts blocked in bank accounts for subscription to the issue.
"Our balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt. This decision will not have any impact on our existing operations and future plans. 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. We are very confident that we will continue to get your support. Thank you for your trust in us," Adani said.
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