Placeholder canvas

Adani Enterprises Calls Off ₹20,000 Crore FPO

Date:

Ahmedabad: The Board of Adani Enterprises Ltd (AEL) has decided not to go ahead with the fully subscribed ₹20,000-crore Follow-on Public Offer (FPO).

The company said in a release that given the unprecedented situation and the current market volatility, it “aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction”.

“After a fully subscribed FPO, yesterday’s decision of its withdrawal would’ve surprised many. But considering the volatility of the market seen yesterday, board strongly felt that it wouldn’t be morally correct to proceed with FPO,” Gautam Adani, Chairman of Adani Group said on Thursday.

“For me, the interest of my investors is paramount & everything is secondary. Hence to insulate investors from potential losses we’ve withdrawn FPO. This decision will not have impact on our existing operations and future plans. We’ll continue to focus on timely execution,” Adani added.

Gautam Adani, Chairman, Adani Enterprises Ltd referred to the volatility in the stock over the last week and said the interest of the investors is paramount and to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO.

“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. 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,” he said.

“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,” he added.

Gautam Adani said the company’s balance sheet is very healthy with strong cashflows and secure assets.

“We are working with our Book Running Lead Managers (BRLMs) to refund the proceeds received by us in escrow and to also release the amounts blocked in your bank accounts for subscription to this issue,” he said.

“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,” he added.

Shares of Adani Enterprises nosedived sharply on Wednesday, a day after its follow-on public offer closed for the subscription.

The shares of Adani Group flagship company closed at Rs 2,179.75 with a sharp decline of 26.70%.

Its intraday low was Rs 1,941.2, over 30 per cent lower than Tuesday’s settlement price.

On Tuesday, the last day for subscription, the follow-on public offer (FPO) issued by Adani Enterprises was fully subscribed.

A follow-on public offering (FPO) is the issuance of shares to investors by a company listed on a stock exchange after its initial public offerings.

Data showed the demand for the FPO was led by non-institutional investors, and they subscribed to the shares 3.26 times. The portion for institutional investors was also oversubscribed.

On Monday, an Abu Dhabi-based diversified conglomerate International Holding Company announced that it will invest about USD 400 million (AED 1.4 billion) into the Adani Enterprises’ follow-on public offer (FPO) through its subsidiary Green Transmission Investment Holding RSC Limited.

Adani Enterprises had filed a red herring prospectus with the markets regulator Securities and Exchange Board of India (SEBI) for the Rs 20,000 crore follow-on public offer (FPO), the largest ever in India.

There were concerns that the FPO may not receive a strong response from investors amid a report by a US-based Hindenburg Research that surfaced on January 24, which claimed the Adani Group of having weak business fundamentals among others.

The US-based firm, in its report, raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations. In response, Adani Group on Sunday said the recent report by Hindenburg Research was not an attack on any specific company but a “calculated attack” on India, its growth story, and ambitions. It added the report was “nothing but a lie”.

(With ANI inputs)

Click here for Latest News updates and viral videos on our AI-powered smart news

For viral videos and Latest trends subscribe to NewsMobile YouTube Channel and Follow us on Instagram

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Elections 2024: Legal Cases Against Donald Trump And How It Can Impact His Chances For Presidency

Former President Trump was indicted with charges of overturning the 2020 Presidential election and was indicted on Felony charges and also the violence of January 6 2021 in Washington D.C.

About 80,000 Leaders, Workers From Different Parties Join BJP Ahead Of Lok Sabha Elections

New Delhi: Ahead of the upcoming general elections 2024,...

Arvind Kejriwal’s ED Custody Extended Till April 1

New Delhi: The Rouse Avenue Court in Delhi extended...

Fact Check: Mohan Bhagwat-Led RSS NOT Supporting INDIA Bloc

A video alleging that the Rashtriya Swayam Sevak Sangh...