The Abu Dhabi-based International Holding Co. has confirmed that Adani Enterprises Ltd. completed the transfer of funds invested in the latter's now-withdrawn follow-up offering.
IHC informed the Adu Dhabi Securities Exchange that it was "officially notified by the listing entity (Adani Enterprises) that they have decided to call off the share sale from the market in which we have subscribed".
"While the decision to withdraw its floatation isn't unique, and we understand floats get pulled for various reasons; International Holdings Company would like to confirm that the invested funds have been transferred back to IHC's bank account in accordance with standard legal process and procedure," the exchange filing read.
On Jan. 30, IHC had committed 1.4 billion Emirati dirhams (around $400 million or Rs 3,260 crore) in Adani Enterprises' Rs 20,000-crore FPO.
Late on Wednesday night, Adani Enterprises' decided to pull back the offer in order to "protect the interest of its subscribers" in the wake of a rout in Adani Group stocks due to volatility.
The FPO was fully subscribed after a slow start, even as the Adani Enterprise stock saw a massive sell-off in the wake of a Hindenburg Research report alleging "stock manipulation and fraud".
In response, the group's Chief Financial Officer Jugeshinder Singh termed the report a "malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India's highest courts".
"... 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.
He had said the company is working with book-running lead managers to refund the FPO proceeds in escrow and release the amounts blocked in subscribers' bank accounts.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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