Adani Enterprises not to proceed with FPO; Investors’ money to be returned
Adani Enterprises will not go ahead with the FPO of equity shares up to Rs 20,000 crore. Investors’ money will be returned. The board of directors of the company took this decision on Wednesday. The Equity Shares are of face value of Re 1 each on partly paid-up basis. This FPO was fully subscribed.
The company said in a statement, ‘The Board takes this opportunity to thank all the 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, its business and its management has been extremely reassuring and humbling. Thank you.’ The subscription to the FPO was closed yesterday (on January 31).
It was further stated in the statement, ‘However, today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary 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. 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.’
What is FPO?
FPO stands for Follow on Public Offer. It is a way of raising money for the company. The company which is already listed in the stock market offers new shares to the investors. These shares are different from the shares present in the market. Mostly these shares are issued by the promoters. FPO is used to change the equity base of the company.
