Adani Enterprises has cancelled its Follow-On-Public Offering (FPO) and will return money to its investors, amidst the stock rout  triggered after US-based short seller Hindenburg Research  accused the Indian conglomerate of using tax havens and highlighted debt concerns in a report.

"The Board of Directors of the Company at its meeting held today i.e. February 1, 2023 has decided, in the interest of its subscribers, not to proceed with the further public offer (FPO) of equity shares aggregating up to Rs 20,000 crore of face value Rs 1 each on partly paid-up basis, which was fully subscribed," the company said in an exchange filing.

Gautam Adani, Chairman, Adani Enterprises Ltd said, “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."

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"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 will 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," Adani said in a press statement.

"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," he said.

The billionaire business man said that the decision not to continue with the FPO will not have any impact on Adani Enterprises's existing operations and future plans.

(Writing by Seban Scaria seban.scaria@lseg.com; editing by Anoop Menon)