'Not morally correct': Adani Enterprises withdraws fully subscribed FPO

The Board of Adani Enterprises Ltd., (AEL) has decided not to go ahead with the fully subscribed Follow-on Public Offer (FPO).

A press statement from the company on Wednesday night (February 1) said, 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.

Also read: Mukesh Ambani is richest Asian as Adani tumbles out on Hindenburg row

Gautam Adani, Chairman, of 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 have 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 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.”

Also read: Adani group stocks nosedive; Adani Enterprises tumble over 28%

Adani said that the company is working with 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.

Also read: Congress takes dig at Gautam Adani speaking of being ‘morally correct’

“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. 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.”

Also read: Govt refuses to comment on Adani Group crisis

Also read: Hindenburg report brings Gautam Adani’s family into spotlight

Also read: Hindenburg effect: Gautam Adani vanishes from world’s top 10 richest list