Why Adani Enterprises Withdrew Its FPO This decision will not have any impact on the company's existing operations and future plans as it will continue to focus on timely execution and delivery of projects, the company said in a statement
By Shrabona Ghosh •
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Concerned by the current market volatility, the board of Adani Enterprises Ltd., has decided to withdraw the fully subscribed Follow-on Public Offer (FPO).
"The board takes this opportunity to thank all the investors for your support and commitment to our FPO. 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 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," said Gautam Adani, chairman, Adani Enterprises Ltd.
"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," the company said in a statement.
This decision will not have any impact on the company's existing operations and future plans as it will continue to focus on timely execution and delivery of projects. "The EBIDTA levels and cash flows have been very strong and we have an impeccable track record of fulfilling our debt obligations. We will continue to focus on long term value creation and growth will be managed by internal accruals," added the statement.
On the first day of Adani Enterprises' INR 20,000-crore follow-on public offer (FPO), only 1 per cent of the shares on sale were subscribed. On Monday, International Holding Company (IHC), the diversified Abu Dhabi-based conglomerate, announced it would be investing $400 million into the Adani Enterprises Further Public Offering (FPO), through its subsidiary Green Transmission Investment Holding RSC Limited. "IHC subscribed to 16 per cent of Adani Enterprises' $2.5 billion FPO," said a statement by IHC.
Adani Enterprises Limited (AEL) is the flagship company of Adani Group. Adani Enterprises has focused on building emerging infrastructure businesses and divesting them into separate listed entities.
