Ajit Karn
Adani Enterprises said on Wednesday that it has decided to pull its Rs 20,000-crore follow-on public offer (FPO), which was fully subscribed, and will give the money back to investors. The news came a day after the company’s FPO was fully taken up on Tuesday, the last day of the offer.
“The board of Adani Enterprises Ltd. (AEL) decided not to move forward with the FPO, even though it was fully subscribed. Due to the fact that this has never happened before and that the market is so unstable right now, the company wants to protect the interests of its investors by returning the FPO proceeds and cancelling the completed transaction “The company that leads the Adani group said this in a statement.
As many as 4.62 billion shares were asked for, but only 4.55 billion were offered.
BSE data shows that non-institutional investors bid on more than three times the 96.16 lakh shares that were set aside for them, while the 1.28 crore shares that were set aside for qualified institutional buyers (QIBs) were almost all taken.
Small investors and company employees, on the other hand, didn’t react much.
Gautam Adani, Chairman, Adani Enterprises Ltd said, “Tuesday was the last day that people could sign up for the FPO. Even though the stock has been up and down in the last week, your faith in the Company, its business, and its management has been very comforting and humbling. Thanks a lot “.
“However, the market has been crazy today, and the stock price of the company has changed throughout the day.”
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“Due to these unusual circumstances, the company’s board of directors thought that moving forward with the issue would not be morally right. The investors’ needs come first, so the Board has decided not to move forward with the FPO to protect them from any possible financial losses “Adani said.
The company said that it is working with its Book Running Lead Managers (BRLMs) to return the money that was put in escrow and to free up the money that was put on hold in investors’ bank accounts when they signed up for this issue.
