Image Source : AP Representational Image
Adani calls off its FPO: In a major development, Adani Enterprises on Wednesday cancelled the recently launched Follow-on Public Offer (FPO). According to the statement released by Adani enterprises, the Board of Directors of the Company at its meeting decided not to proceed with the FPO. It said that the decision was taken in the interest of its subscribers.
“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 withdrawing the completed transaction, ” according to the statement.
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 yesterday. Despite the volatility in the stock over the last week, your faith and belief in the company, its business and its management have been extremely reassuring and humbling.”
“Going ahead with the issue would not be morally correct”
Further, he underscored that the market has been unprecedented, and its stock price has fluctuated over the course of the day. Given these extraordinary circumstances, Adani said that 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,” he noted.
“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,” according to the statement.
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