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.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.
Adani Enterprises has decided in the board meeting held on February 1 that we will not take the FPO forward. In view of the present situation and the recent market volatility of the company, it has been decided not to go ahead with the FPO in the interest of the customers and call off the transaction completely. The board said, 'We thank the investors for participating in the FPO. The subscription to the FPO was closed yesterday (on January 31).
We thank you for your trust and confidence in this company, our business and our management, despite the stock being volatile. However today the market has been phenomenal. Our stock price has fluctuated throughout the day. In view of such extraordinary circumstances, the Board of the Company felt that it would not be ethically correct to go ahead with this FPO at this stage. The interest of our investors is at the forefront.
Therefore, to save them from any future financial loss, the board has decided not to go ahead with this FPO. We are working with our Book Running Lead Managers (BRLMs) to issue refunds to our people. Our balance sheet is very strong at the moment. Our cash flow and assets are secure. Also, we have a healthy record of repayment of loans.
Our decision will not affect our current operations and our future plans. We will continue to focus on long-term value creation and our growth will be managed through internal growth. We are confident that we will continue to get your support.
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.
Companies use IPO or FPO for their expansion. The company launches its shares in the market for the first time through Initial Public Offer ie IPO. While in FPO additional shares are brought to the market.