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NEW DELHI: Billionaire Gautam Adani-led group’s flagship firm Adani Enterprises on Wednesday decided to scrap its follow on public offer (FPO), a day after it was fully subscribed.
In a regulatory statement to the bourses, Adani Group said that it has decided not to proceed with FPO in the interest of its subscribers.
“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,” Adani Group said in its official release.
The Rs 20,000 crore worth FPO was fully subscribed a day ago as investors pumped funds into the flagship firm.
The fundraising was critical for Adani, not just because it was seen as a move to cut his group’s debt, but also because it is was being seen by some as a gauge of confidence at a time when the tycoon faces one of his biggest business and reputational challenges.
Thanking the investors for their support and commitment to the FPO, Gautam Adani said that given the unprecedented market movement, the board of directors of company felt that going ahead with FPO 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.
Stating that his group’s balance sheet is very healthy with strong cashflows and secure assets, Adani said that the decision will not have any impact on their existing operations and future plans.
“Once the market stabilises, we will review our capital market strategy,” he added.
In a regulatory statement to the bourses, Adani Group said that it has decided not to proceed with FPO in the interest of its subscribers.
“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,” Adani Group said in its official release.
The Rs 20,000 crore worth FPO was fully subscribed a day ago as investors pumped funds into the flagship firm.
The fundraising was critical for Adani, not just because it was seen as a move to cut his group’s debt, but also because it is was being seen by some as a gauge of confidence at a time when the tycoon faces one of his biggest business and reputational challenges.
Thanking the investors for their support and commitment to the FPO, Gautam Adani said that given the unprecedented market movement, the board of directors of company felt that going ahead with FPO 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.
Stating that his group’s balance sheet is very healthy with strong cashflows and secure assets, Adani said that the decision will not have any impact on their existing operations and future plans.
“Once the market stabilises, we will review our capital market strategy,” he added.
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