Adani Enterprises has called off the Rs 20,000 crore-FPO, the company said in a statement on Wednesday. According to the BSE and NSE filing, the decision was taken after the Board of Directors of Adani Enterprises held a meeting earlier in the day. The step has been taken ‘in the interest of its subscribers,’ Adani Enterprises said in the official statement. This means that the company will not proceed with the FPO or further public offer of equity shares aggregating up to Rs 20,000 crore. It should be noted that the FPO was fully subscribed.
Adani Entreprises ‘stands by its investors,’ company said after withdrawing the fully subscribed FPO. The company said that in view of the current market volatility, it would seek to ‘protect its investing community’ by returning the proceeds of the Rs 20,000 crore-FPO.
Adani Entreprises Chairman Gautam Adani said that the market has been unprecedented and ‘our stock prices has fluctuated over the course of the day. Given these extraordinary circumstances, the company board felt that going ahead with the issue will not be morally correct. The interest of the investors is paramount.’
Adani also said that the company is working with its Book Running Lead Manageers to refund the money. He further added that ‘our balance sheet is very healthy with strong cashflows and secure assets.’ On calling off the FPO, Gautam Adani also said that it will not have any impact on existing operations and future plans.
Family offices of top industrialists such as Mukesh Ambani, Sunil Mittal and Sajjan Jindal are said to be among those who had invested in the Rs 20,000 crore FPO’s main book on the last day.