Adani not to go ahead with fully subscribed FPO
Adani calls off FPO: The Board of Adani Enterprises Ltd (AEL) decided not to go-ahead with the fully subscribed Follow-on Public Offer (FPO).
In a statement released by Adani Enterprise, the company stated 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".
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Chairman of Adani Enterprise, Gautam Adani 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.
Gautam Adani further stated that, "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."
In his statement he further added that, “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.
As Adani’s balance sheet is very healthy having strong cashflows and secure assets, therefore the decision to scrap off FPO will not have any impact on company’s existing operations and future plans.
The shares of Adani Group Flagship Company closed at Rs 2,179.75 with a sharp decline of 26.70 per cent.
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Its intraday low was Rs 1,941.2, over 30 per cent lower than Tuesday's settlement price.
Earlier, 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.