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

Yemen’s Houthis Claim Responsibility For Missile Attack On Israel

Yemen's Houthis claimed responsibility for a missile attack on Israel's Negev region, targeting the Negev…

5 hours ago

From ‘Razia Sultan’ To ‘Sarfarosh’: The Timeless Journey Of Nida Fazli, ‘Main Nida’

A special screening of the film 'Main Nida', based on the life of the renowned…

6 hours ago

Flood Alert In PoK’s Muzaffarabad After Alleged Jhelum Water Release

A flood alert was issued across Muzaffarabad on Saturday after locals reported a sudden rise…

7 hours ago

Zelensky, Trump Hold Talks In Rome Ahead Of Pope’s Funeral; Discusses Ceasefire & Peace

US President Donald Trump and Ukrainian President Volodymyr Zelensky met in Rome on Saturday ahead…

8 hours ago

Pahalgam Terror Attack: Ishan Educational Institutions Organises Protest Against Terrorism

Ishan Educational Institutions, Greater Noida, today organised a peaceful protest march condemning the recent terror…

9 hours ago

Complete Ban On Drone Flights Over Noida International Airport ‘Red Zone’

Authorities have imposed a complete ban on the operation of drones and UAVs over and…

9 hours ago