Adani Enterprises FPO Cancels ₹20,000 Crore Follow-on Public Offering Key highlights:
- Adani Enterprises Ltd (AEL) has decided to withdraw its Follow-on Public Offer (FPO) after a decline in the company’s stock prices.
- The fully subscribed FPO was worth ₹20,000 crore and had received significant investment from institutional investors and High Net Worth Individuals (HNIs).
- The Board of AEL deemed it inappropriate to proceed with the FPO due to the exceptional market conditions and fluctuations in the stock price.
- The company’s chairman, Gautam Adani, stated that the priority is to protect the interests of the investing community.
- AEL is working with its Book Running Lead Managers (BRLMs) to refund the FPO proceeds and unblock the amounts reserved in investors’ bank accounts for subscription.
The Board of Adani Enterprises Ltd (AEL) has decided to discontinue the fully subscribed Follow-on Public Offer (FPO) following the decline of the group’s stock on the stock exchanges on Wednesday.
Adani Enterprises stated, “In light of the exceptional circumstances and current market instability, the company aims to safeguard the interests of its investors by repatriating the FPO proceeds and retracting the concluded transaction.”
The fully subscribed ₹20,000-crore Follow-on Public Offer (FPO) received significant investments from institutional investors and High Net Worth Individuals (HNIs) on Tuesday. However, the serious accusations by Hindenberg Research deterred participation from retail investors.
Gautam Adani, Chairman of Adani Enterprises Ltd, stated, “The market today has been exceptional, causing fluctuations in our stock price. In these extraordinary times, the Board deemed it morally inappropriate to proceed with the FPO. The welfare of our investors is of utmost importance and to shield them from any potential financial harm, the Board has decided to withdraw the offer.”
Adani added, “We are collaborating with our Book Running Lead Managers (BRLMs) to repay the proceeds held in escrow and unblock the amounts reserved in your bank accounts for this offer’s subscription.”
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