New Delhi: Adani Enterprises Ltd has called off its Rs20,000-crore follow-on share sale a day after it was fully subscribed, the company said in a statement. The company said it called off the follow-on public offer, or FPO, considering market volatility and will return the FPO money to investors.
FPOs are done by already listed companies to diversify their equity shareholding.
“…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 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,” Adani Enterprises Chairman Gautam Adani said in the statement.
Adani thanked investors for their support and commitment to the FPO as the subscription had closed successfully on Tuesday.
“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,” he said.
The sell-off in Adani group stocks and bonds continued, with shares in Adani Enterprises plunging 28 per cent and Adani Ports and Special Economic Zone dropping 19 per cent, the worst day on record for both.
“We are working with our book-running lead managers 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,” Adani said in the statement.
“Our balance sheet is very healthy with strong cash flows and secure assets, and we have an impeccable track record of servicing our debt. 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. Thank you for your trust in us.” Adani said.
(IANS)
