Business

Adani Group Decides To Call Off Follow-On Public Offer (FPO)

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.

“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.

Also read: Gautam Adani drops off list of world’s top 10 richest people

Spriha Rai

Recent Posts

Maha Kumbh 2025: Yogi Government’s Strategic Coordination Ensures Timely Preparations

For Maha Kumbh 2025, preparations are in full swing as authorities work to ensure all…

9 hours ago

In Special Gesture, Kuwait’s Prime Minister Sees-Off PM Modi At Airport After Conclusion Of Historic Visit

Prime Minister Narendra Modi wrapped up his two-day visit to Kuwait on Sunday evening. In…

10 hours ago

Maha Kumbh 2025: Shri Panchdashnam Aawahan Akhara Makes Grand Entry Into Maha Kumbh City

Maha Kumbh 2025 with preparations for the Maha Sammelan are in full swing as 13…

11 hours ago

India’s Unifying Initiative: MRM Declares Bhagwat’s Message As The Foundation Of National Unity

The MRM strongly endorsed Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat’s statement on temple-mosque disputes.…

11 hours ago

Maha Kumbh-2025: Prayagraj Mela Authority Deploys Advanced Sanitation Technology

For Maha Kumbh-2025, the Prayagraj Mela Authority has made extensive preparations to provide a clean…

13 hours ago

PM Narendra Modi To Attend Christmas Celebrations At CBCI In New Delhi

Prime Minister Narendra Modi is all set to attend the Christmas celebrations at CBCI Centre…

13 hours ago