Adani Enterprises Not To Proceed With FPO of Shares Worth Rs 20,000 Crore, Money To Be Refunded

 In a statement, Adani enterprises said the Board of Directors during its meeting decided in the interest of its subscribers, not to proceed with the FPO of equity shares aggregating up to Rs 20,000 crore.

Adani Enterprises Latest Update: Adani Enterprises on Wednesday said it won’t go ahead with its fully subscribed follow-on public offer and added that it will refund the FPO proceeds.

 In a statement, Adani enterprises said the Board of Directors during its meeting decided in the interest of its subscribers, not to proceed with the FPO of equity shares aggregating up to Rs 20,000 crore of face value Rs 1 each on partly paid-up basis, which was fully subscribed.

“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,” the Adani Enterprises said in a statement.

Read Full Statement of Adani Enterprises

Gautam Adani, Chairman of 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.

He further added that 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.

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 per cent.