AMN
In a late night development, the Adani Group on Wednesday said the firm decided not to go-ahead with the fully subscribed Follow-on Public Offer (FPO). The announcement came following the recent crash in shares of Adani Group.
The Board of Adani Enterprises (AEL) announced that it has decided not to go-ahead with the fully subscribed Follow-on Public Offer (FPO).
“Given 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 withdraws the completed transaction,” Adani Enterprises said in a statement to the exchanges.
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.”
Given the extraordinary circumstances, AEL’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,” said the statement.
It said, our balance sheet is very healthy with strong cashflows 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.