Adani calls off Rs 20K cr FPO, to return money

February 01, 2023 23:03

Group chairman Gautam Adani

Adani Enterprises on Wednesday said it has decided to withdraw its fully subscribed Rs 20,000-crore follow-on public offer (FPO) and will return the proceeds to investors.

The announcement came a day after the company's FPO was subscribed fully on the last day of the offer on Tuesday.

"The Board of Adani Enterprises Ltd., (AEL) decided not to go ahead with the fully subscribed FPO. Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction," the Adani group's flagship company said in a statement.

As many as 4.62 crore shares were sought as against an offer of 4.55 crore. Non-institutional investors put in bids for over three times the 96.16 lakh shares reserved for them, while the 1.28 crore shares reserved for qualified institutional buyers (QIBs) was almost fully subscribed, according to BSE data.

There was, however, muted response from retail investors and company employees.

Gautam Adani, Chairman, Adani Enterprises Ltd said, the subscription for the FPO closed successfully on Tuesday. "Despite the volatility in the stock over the last week, your faith and belief in the company, its business and its management has been extremely reassuring and humbling. Thank you".

However, today the market has been unprecedented, and the company's 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," Adani said.

The company said that its working with its Book Running Lead Managers (BRLMs) to refund the proceeds received in escrow and to also release the amounts blocked in investors bank accounts for subscription to this issue.

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