- 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: Gautam Adani
- Our balance sheet is very healthy with strong cash flows and secure assets, and we have an impeccable track record of servicing our debt: Adani Group chief
NE BUSINESS BUREAU
AHMEDABAD, FEB 1
Adani Enterprises Limited (AEL) on Wednesday announced it has decided not to go-ahead with the fully subscribed Follow-on Public Offer (FPO) of equity shares aggregating up to Rs 20,000 crore of face value Re 1 each on partly paid-up basis, which was fully subscribed on Tuesday.
This follows after shares of Adani Group companies encountered a massive crash on Wednesday, triggering wild volatility in benchmark stock indices that went up after Finance Minister Nirmala Sithraman presented the Union Budget 2023.
The Adani Group released a statement saying, “The Board of Adani Enterprises Ltd decided not to go-ahead with the fully subscribed Follow-on Public Offer (FPO).”
“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 statement read.
Adani Group chairman Gautam Adani 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. 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.”
“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,” Gautam Adani said.
“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 statement added.
The statement also assured the investors that “Our balance sheet is very healthy with strong cash flows 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.”
