Adani Enterprises announced on February 1 that its board has decided not to go ahead with the fully subscribed follow-on public offer (FPO).
The stock regulatory filing states that the company aims to protect the interests of its investment community by returning FPO proceeds and taking back completed transactions.
The following action has been taken by the firm citing fall in the shares of Adani group companies.
Read also: adani news live updates
“The Board takes this opportunity to thank all investors for your support and commitment to our FPO. Subscription to the FPO closed successfully yesterday. Despite the volatility in the stock during the past week, the Company, its business and its management Your trust and confidence has been extremely reassuring and humbling. Thank you,” said Gautam Adani, Chairman, Adani Enterprises Ltd.
“In view of these extraordinary circumstances, the Board of the Company felt that it would not be ethically correct to proceed with the issue. The interest of the investors is paramount and therefore in order to save them from any possible financial loss, the Board has decided not to proceed has decided.” FPOs,” Adani said.
The multi-billionaire said that his firm is working with our Book Running Lead Managers (BRLMs) to refund the proceeds held by us in escrow and also release the amounts blocked in your bank accounts for subscription to the issue To be.
The firm also said that the balance sheet is very healthy with strong cashflows and secured assets, and they have an impeccable track record of repaying our loans. This decision will have no impact on our current operations and future plans.
Meanwhile, market regulator Sebi is probing the route and looking into any possible irregularities in the recent share sale by its flagship company, Reuters reported.
The report said Sebi is also probing allegations made in a report by US short-seller Hindenburg Research that Adani companies did not declare related party transactions as required.
Adani shares have declined following a January 24 report by US-based Hindenburg Research, which expressed concern about high debt levels and use of tax havens.
Besides Sebi, ICRA, a unit of rating agency Moody’s, has said it is monitoring the impact of recent developments in the Adani group on its rated portfolio. According to details, Adani Enterprises has lost $86 billion since last week after Hindenburg Research accused the group of using tax havens and raised concerns over high debt levels. Adani Group has denied the allegations.
Bloomberg News said the five-day rout has now wiped off nearly $92 billion in the value of the group’s listed units, while Adani’s fortune has fallen by more than $40 billion.
With agency inputs.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & stay business News,