Adani Group calls off ₹20,000 crore FPO, says will return money to investors
The Hindu
Adani Enterprises Ltd., were to use ₹10,869 crore for green hydrogen projects, work at the existing airports and the construction of a greenfield expressway out of the ₹20,000 crore proceeds from the FPO
The Board of Adani Enterprises Ltd., (AEL) decided not to go ahead with the fully subscribed Follow-on Public Offer (FPO), the company announced on Februray 1.
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 a statement.
On Tuesday, Adani Enterprises’ share price fell below the offer price on the opening day of the FPO last week after Hindenburg Research alleged that the group was “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.
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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.”
He added that 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,” the company said.