Adani Enterprises Calls Off FPO, To Return Money To Investors

Adani Enterprises Ltd has called off its ₹ 20,000-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.

“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," said Adani Enterprises Ltd Chairman Gautam Adani.

"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 added. 

The multi-billionaire said said that his firm is 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 firm also added that the balance sheet is very healthy with strong cashflows and secure assets, and they have an impeccable track record of servicing our debt. This decision will not have any impact on our existing operations and future plans.

The FPO sailed through yesterday despite a scathing report by a US-based short-seller, Hindenburg, that pummelled stocks in Adani group companies. Hindenburg Research's January 24 report flagged concerns about the group's high debt levels and its suspected improper use of tax havens. Adani has called the report baseless.