Adani Group
Adani Group announced late Wednesday night, 1 February 2023, that it would withdraw its fully-subscribed Rs. 20,000-crore follow-on public offer (FPO).
In an exchange filing, the company said that the decision was made “given the unprecedented situation and the current market volatility” and the company’s aim to protect the interest of its investing community. The firm’s stock closed trading on Wednesday 28.5 percent lower at Rs. 2,128.70.
“The Board of Directors of the Company at its meeting held today i.e. 1 February 2023, has decided, in the interest of its subscribers, not to proceed with the further public offer (FPO) of equity shares aggregating up to Rs. 20,000 crore of face value Rs 1 each on partly paid-up basis, which was fully subscribed,” Adani Enterprises said in an exchange filing.
Adani Group Chairman statements
Gautam Adani, Chairman of Adani Group said that the decision was taken amid the fluctuations the group’s stocks saw during the day’s trading.
#WATCH | After a fully subscribed FPO, yday’s decision of its withdrawal would've surprised many. But considering volatility of market seen yday, board strongly felt that it wouldn't be morally correct to proceed with FPO:Gautam Adani, Chairman, Adani Group
(Source: Adani Group) pic.twitter.com/wCfTSJTbbA
— ANI (@ANI) February 2, 2023
“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,” Adani Group’s Chairman said in a statement.
“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 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”, he added.
In his statement, Gautam Adani also added that the decision will not have any impact on the company’s existing operations.
“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,” Mr. Adani said.
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