The Board of Directors of the Adani Enterprises Ltd. (AEL) at its meeting held on February 1, 2023 has decided not to proceed with the further public offer (FPO) of equity shares in the interest of its subscribers.
Adani Group Revoking FPO
AEL have decided not to go-ahead with the fully subscribed Follow-on Public Offer (FPO) which is aggregating up to Rs 20,000 crore of face value Rs 1 each on partly paid-up basis and was fully subscribed.
It seems that considering 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.
Going Forward With FPO Not Morally Correct
In a media release, Gautam Adani, Chairman, Adani Enterprises Ltd 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 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 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,”.
Further adding, “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.
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 stabilizes, 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.”
Coming to AEL, this is the flagship company of Adani Group, one of India’s largest business organizations.
Adani Enterprises has focused on building emerging infrastructure businesses over the years further contributing to nation-building and divesting them into separate listed entities.
The company has successfully built unicorns like Adani Ports & SEZ, Adani Transmission, Adani Power, Adani Green Energy, Adani Total Gas and Adani Wilmar.
The conglomerate has contributed significantly to make the country self-reliant with its portfolio of robust businesses leading to robust returns to its shareholders.
