TNI Bureau: Adani Enterprises Ltd said in a statement that its 20,000-crore follow-on share sale was cancelled a day after it was fully subscribed.
According to the statement, the company cancelled the follow-on public offer, or FPO, due to market volatility and will refund the FPO money to investors.
“…Today’s market was unprecedented, and our stock price fluctuated throughout the day. Given these extraordinary circumstances, the company’s board of directors determined that proceeding with the issue would be morally wrong. The board has decided not to proceed with the FPO in order to protect the investors’ interests and protect them from any potential financial losses “Gautam Adani, Chairman of Adani Enterprises, said in a statement.
Mr. Adani thanked investors for their support and commitment to the FPO following the subscription’s successful completion yesterday.
“Despite the stock’s recent volatility, your faith and belief in the company, its business, and its management has been extremely reassuring and humbling,” he said.
The sell-off in Adani group stocks and bonds continued today, with Adani Enterprises shares falling 28% and Adani Ports and Special Economic Zone shares falling 19%, the worst day on record for both.
“Our balance sheet is in excellent shape, with strong cash flows and secure assets, and we have an excellent track record of debt service. This decision will have no effect on our current operations or future plans. We will continue to focus on long-term value creation, with internal accruals managing growth. We will review our capital market strategy once the market has stabilised. We are confident that we will continue to receive your assistance. Thank you for putting your faith in us.” Mr. Adani stated.