News

Published: Feb 2, 2023
Updated: Feb 2, 2023

Adani Enterprises Calls Off Rs 20,000 Crore FPO

Adani Enterprises Limited (AEL) announced on Wednesday that it has withdrawn its Rs 20,000 crore follow-on public offering (FPO). The decision was taken by the board of directors in the interest of shareholders due to the current market volatility and unprecedented situation.

FPO Subscription Successful Despite Volatility

Despite the stock's volatile performance over the last week, the FPO subscription closed successfully on Tuesday. Family offices of prominent Indian business families, including Mukesh Ambani, Sajjan Jindal, and Sunil Mittal, are said to have invested in the main book on the final day. The FPO received bids for 50.8 million shares, against the offer size of 45.5 million shares, with an overall subscription of 1.12%.

Returning FPO Proceeds to Protect Investors

Adani Enterprises will be returning the FPO proceeds and withdrawing the completed transaction to protect the interest of its investing community. The company stated that its balance sheet is healthy with strong cash flows and secure assets and this decision will not impact its existing operations or future plans.

Foreign Investors Participated in Anchor Book

A number of foreign investors, including Abu Dhabi Investment Authority, Maybank Asia, Goldman Sachs, Nomura, Societe Generale, Jupiter, BNP Paribas, Al Mehwar, Citigroup, and Morgan Stanley, participated in the issue's anchor book. Domestic investors such as SBI Employee Pension Fund, HDFC Life, Life Insurance Corporation of India, and SBI Life were also part of the anchor book.

Cites unprecedented market volatility and current situation

Adani Enterprises has called off its Rs 20,000 crore FPO due to the current market volatility and unprecedented situation. The decision was taken in the interest of shareholders and to protect the interest of its investing community. The company will be returning the FPO proceeds and withdrawing the completed transaction. Despite the successful subscription, foreign and domestic investors participated in the anchor book. The company's balance sheet remains healthy and this decision will not impact its existing operations or future plans.