A press release issued by the conglomerate late on Wednesday stated, "Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction."

Gautam Adani, chairman, Adani Enterprises said, "The subscription for the FPO closed successfully yesterday. 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.

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 added that, "Our balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt. This decision will not have any impact on our existing operations and future plans. We will continue to focus on long term value creation and growth will be managed by internal accruals. Once the market stabilizes, we will review our capital market strategy. We are very confident that we will continue to get your support. Thank you for your trust in us."

Adani Enterprises launched the FPO on 27 January 2023, which was fully subscribed on Day 3. The issue received bids for 5,08,68,352 equity shares against the issue size of 4,55,06,791 equity shares. The issue was subscribed 1.12 times.

The portion reserved for retail individual investors (RIIs) was subscribed by 0.12 times. The non-institutional investors (NII) category was subscribed by 3.32 times. The portion reserved for qualified institutional buyers (QIBs) was subscribed 1.26 times.

The issue also included a reservation of upto 1,60,668 equity shares for eligible employees. The employees category was subscribed 0.55 times against the reserved portion.

Ahead of the FPO, the company on 25 January 2022 raised Rs 5,985 crore from 33 institutional investors by finalising the allocation of 1.83 crore shares under anchor portion at a price of Rs 3,276 a share.

The company planned to utilise the net proceeds to fund capital expenditure requirements for projects under its subsidiaries and repayment of borrowings.

Adani Enterprises is the flagship company of Adani Group, one of India's largest business conglomerates. The company's business investments are centered on the fields of airport management, technology parks, roads, data centre and water infrastructure.

On consolidated basis, the company's net profit surged 117% to Rs 460.94 crore on 188% jump in net sales to Rs 38,175.23 crore in Q2 FY23 over Q2 FY22.

Meanwhile, shares of Adani Enterprises slumped 28.45% to end at Rs 2128.70 on Wednesday.

The media reported that Credit Suisse Group AG has stopped accepting bonds of Gautam Adani's group of companies as collateral for margin loans to its private banking clients. This came after US-based short-seller Hindenburg Research's adverse report on the conglomerate last week.