Adani Groups calls off Rs. 2000 crore FPO, amid ‘extraordinary circumstances’
Adani Group has called off its Follow-on Public Offer (FPO) of equity shares aggregating up to Rs. 20,000 crore of face value Rs. 1 each on a partly paid-up basis, which was fully subscribed.
The Adani Group has confirmed that it held a meeting on Wednesday evening, and decided to call off the FPO. The decision has come after shares of Adani Group companies experienced a massive crash on Wednesday, triggering a wild volatility in benchmark stock indices that went up after Finance Minister Nirmala Sitharaman presented the Union Budget 2023.
Justifying their decision, Adani Group chairman Gautam Adani said that extraordinary circumstances has forced the company’s board to feel that going ahead with the FPO would not be morally correct.
“The board takes this opportunity to thank our 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, it’s business and it’s management has been extremely reassuring and humbling,” read the statement.
“Given that extra circumstances, the Company’s board felt that going ahead with the issue would 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,” concluded the statement.