Adani Enterprises on Wednesday cancelled the recently introduced Follow-on Public Offer in a significant development (FPO). Adani Enterprises reported that the Board of Directors of the Company opted not to move forward with the FPO at its meeting. It claimed that the choice had been made with the interests of its subscribers in mind.
The company wants to safeguard the interests of its investment community, thus it is returning the FPO proceeds and cancelling the completed transaction, per the statement, “given the unprecedented scenario and the present market volatility.
“The Board takes this opportunity to thank all the investors for their support and dedication to our FPO,” stated Gautam Adani, Chairman of Adani Enterprises. Yesterday, the subscription for the FPO was successfully closed. Your trust and belief in the company, its operations, and its management have been incredibly reassuring and humbling despite the recent volatility in the stock.
He also emphasised that the market has been unprecedented and that the stock price has changed throughout the day. Adani claimed that the company’s board decided against moving forward with the project under these unique circumstances because it would not be morally right. “The investors’ interests are paramount, so the Board has decided not to proceed with the FPO,” he said. “To protect them from any potential financial losses.”
In accordance with the statement, “We are working with our Book Running Lead Managers (BRLMs) to refund the proceeds received by us in escrow and to also release the amounts blocked in your bank accounts for subscription to this issue.”
