Adani closed its FPO: In a major development, Adani Enterprises on Wednesday called off its recently launched follow-on public offer (FPO). According to the statement issued by Adani Enterprises, the board of directors of the company in its meeting decided not to go ahead with the FPO. It said that this decision has been taken in the interest of its customers.
“Given the unprecedented situation and current market volatility, the company aims to protect the interests of its investment community by returning FPO proceeds and taking back completed transactions,” according to the statement.
Adani Enterprises Chairman Gautam Adani said, “The Board takes this opportunity to thank all investors for your support and commitment towards our FPO. Subscription for the FPO closed successfully yesterday. Despite the volatility in the stock during the last week Your trust and confidence in the Company, its business and its management has been extremely reassuring and humbling.”
“It would not be morally right to proceed on the issue”
Furthermore, he underlined that the market has been phenomenal, and its share price has fluctuated during the day. In view of these extraordinary circumstances, Adani said that the Board of the company believes that it would not be ethically correct to proceed with the matter. “The interest of the investors is of paramount importance and hence to protect them from any possible financial loss, the board has decided not to go ahead with the FPO,” he said.
As per the statement, “We are working with our Book Running Lead Managers (BRLMs) to refund the proceeds received by us in escrow and also release the amount blocked in your bank accounts for subscription to the issue ”
Also read: Adani Group gives detailed reply, calls Hindenburg’s allegations ‘baseless’