Business

Adani Group calls off Rs.20,000 cr FPO as stocks take a beating

Given the extraordinary circumstances, the company's Board felt that going ahead with the issue would not be morally correct says Adani

PGurus Newsdesk

February 2, 2023

Given the extraordinary circumstances, the company's Board felt that going ahead with the issue would not be morally correct says Adani

Adani group to return FPO money to investors

On Wednesday evening, hours after its shares crashed at the bourses, the Adani Group decided to call off its Rs.20,000 crore follow-on public offer (FPO), saying that money would be returned to the investors. The decision was taken after a meeting of the company’s Board.

A statement issued by Adani Enterprises said, “The Board of Adani Enterprises Ltd 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 withdrawing the completed transaction.”

Adani Group Chairman Gautam Adani 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.”

The statement, however, added that on Wednesday, the market was 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”.

[With Inputs from IANS]

PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views

For all the latest updates, download PGurus App.