Read Adani Group’s full statement on FPO cancellation

The Adani Group, in a statement, said it would return the FPO proceeds to the bidders.

New Delhi:

Adani Enterprises has canceled its Rs 20,000 crore share sale due to current market conditions, the company announced on Wednesday, days after a rout in its shares following criticism from a US short seller.

Adani Group had garnered investor support on Tuesday, with the follow-up stock fully subscribed on the final day of offerings.

But selling in Adani Group stocks and bonds resumed on Wednesday, with shares of Adani Enterprises plunging 28% and Adani Ports and the Special Economic Zone falling 19%, the worst day on record for the two.

The group, in a statement, said it would return FPO proceeds to insulate investors in the offering from potential losses.

Here is the full statement from Adani Group:

The board of directors of Adani Enterprises Ltd., (AEL) has decided not to proceed with the fully subscribed Follow-on Public Offering (FPO).

Given the unprecedented situation and the current market volatility, the Company aims to protect the interests of its investment community by returning the proceeds of the FPO and withdrawing the completed transaction.

Gautam Adani, Chairman of Adani Enterprises Ltd, said: “The Board of Directors takes this opportunity to thank all investors for your support and commitment to our FPO. Subscription for the FPO successfully closed yesterday. Despite the volatility in the stock over the past week , your faith and confidence in the company, its activities and its management has been extremely reassuring and humbling. Thank you.

However, today’s market was unprecedented and our stock price fluctuated throughout the day. Given these extraordinary circumstances, the Company’s Board of Directors felt that going ahead with the show would not be morally correct. The interests of investors are paramount and therefore, to protect them from any potential financial loss, the Board of Directors has decided not to sue the FPO.

We work with our Book Running Lead Managers (BRLM) to refund the products we have received in escrow and also to release the amounts blocked in your bank accounts for the subscription to this show.

Our balance sheet is very healthy with strong cash flow and secure assets, and we have an impeccable track record of servicing our debt.

This decision will have no 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 provisions. Once the market stabilizes, we will revise our capital markets strategy. We are confident that we will continue to benefit from your support. Thank you for the trust you place in us.”

Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group company.

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