Adani Enterprises Withdraws Fully-Subscribed FPO; Check Chairman’s Statement

Mumbai: In a major announcement, Adani Enterprises said on Wednesday night it’s withdrawing the recently-concluded fully subscribed Rs 20,000 crore Follow-on Public Offer (FPO) in the wake of extreme market volatility.

Earlier in the day, the share price of Adani Group’s flagship company crashed 28.45% to close at Rs 2128.70 – much lower than the FPO price of Rs 3,112-3,276 per share.

The company is working with its Book Running Lead Managers to refund the FPO proceeds and release the amounts blocked in the investors’ bank accounts.

“Given the unprecedented situation and the current market volatility the Company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction,” the company stated.

The subscription for the FPO had closed successfully yesterday, but the company felt it would not be morally correct to go ahead with the issue given the current market conditions.

“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,” said Gautam Adani, Chairman of Adani Enterprises Ltd.

Adani statement

He expressed gratitude to the investors for their support and commitment to the FPO, despite the stock’s recent fluctuations.

Adani Enterprises assured investors that the decision to withdraw the FPO will not have any impact on its existing operations and future plans.

“Adani Enterprises Ltd has a strong balance sheet with healthy cash flows and secure assets, and the company’s track record of servicing its debt is impeccable. The company intends to focus on long-term value creation and growth will be managed by internal accruals,” the company said.

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