The Board of Adani Enterprises Ltd. Has decided not to go ahead with the fully subscribed Follow-on public offer (FPO). The Board announced that 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.
Gautam Adani, Chairman, Adani Enterprises, 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. 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”.
“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 if 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”, added Adani.
He further said that the Company is working with their Book Running Lead Managers (BRLMs) to refund the proceeds received by the Company in escrow and to also release the amounts blocked in the investors’ bank accounts for subscription to this issue. He mentioned that the Company’s balance sheet is very healthy with strong cash flows and secure assets, and the Company has an impeccable track record of servicing their debt.
“The decision will not have any impact on our existing operations and future plans”, he expressed.
Adani also mentioned that the Company will continue to focus on long-term value creation and growth will be managed by internal accruals. Once the market stabilizes, the Company will review their capital market strategy. He also emphasised on the Company’s confidence about getting constant support.
