Adani cites moral grounds; withdraws FPO; will return investors' money; informs NSE

Adani Enterprises withdraws its Rs 20,000 crore FPO and will return money to investors. This was decided by the Board of Directors of the Company in the interest of its subscribers.

Ahmedabad:Adani group said it was withdrawing the Rs 20,000 crore FPO, which was offered and fully subscribed. In a statement the group said it stands by its investors. The development comes after the recent downward spirale of Adani stock prices since the Hindenburg Research on the group came out. It also informed about this decision to the National Stock Exchange (NSE).

Full statement:The Board of Adani Enterprises Ltd., (AEL) decided not to go-ahead with the fully subscribed Follow-on Public Offer (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.

Gautam Adani, Chairman, Adani Enterprises Ltd said, "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 has been extremely reassuring and humbling. Thank you.

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. 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.

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."