Read Adani's letter to the stock exchanges on FPO being called off

In a massive development, the Adani Group decided to call off their FPO of equity shares for their flagship firm, Adani Enterprises. The Adani Group highlighted that given the 'unprecedented situation and the current market volatility,' the company wanted to protect the interest of their shareholders.

Adani Group calls off FPO

In a statement issued to the stock exchanges, the Adani Group stated that they were deciding to call off their FPO. "The Board of Directors of the Company at its meeting held today, i.e. February 1, 2023, has decided, in the interest of its subscribers, not to proceed with the further public offering (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," read their statement.

They also attached a media release along with the same to explain their reasoning behind the same. A snippet of their release read, "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 withdrawing the completed transaction."

"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," Gautam Adani was quoted saying in the 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. 

"We are working with our Book Runnin 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." 

"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," he said further.