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Adani Group Calls Off FPO, Will Return Money To Investors
Acknowledging the rout in Adani Stocks in Wednesday’s session it said that the company’s board felt that going ahead with the issue will not be morally correct
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Adani Enterprises, late on Wednesday night said that it has cancelled its Follow-On Public Offering (FPO) and will return money to its investors amid ongoing controversy post the Hindenburg Research last week which accused the company of using tax havens and flagged debt concerns.
"The Board of Directors of the Company at its meeting held today i.e. February 1, 2023 has decided, in the interest of its subscribers, not to proceed with the further public offer (FPO) of equity shares aggregating up to Rs 20,000 crore of face value Rs 1 each on partly paid-up basis, which was fully subscribed," the company said in a regulatory filing.
Adani Enterprises Chairman Gautam Adani said that the Board takes this opportunity to thank all investors for their support and commitment to the company’s 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,” said Adani.
The regulatory filing acknowledged the rout in Adani Stocks in Wednesday’s session and said that the company’s board felt that going ahead with the issue will 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,” the company statement added.
The Group is now working with its Book Running Lead Managers (BRLMs) to refund proceeds received as part of the FPO.
Commenting on its balance sheet and strong cashflows, the company said that it has an impeccable track record of servicing debts.
“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 stabilises, we will review our capital market strategy. We are very confident that we will continue to get your support,” the statement read.