In a major move that will impact the already volatile stock markets, Adani Enterprises has withdrawn its Rs 20,000 crore follow-on public offer that was fully subscribed. The decision was taken today by the board. In a statement, the flagship company of the Adani Group said that the decision has been taken keeping in view the unprecedented situation and the current market volatility. The company aims to protect the interest of its investing community by returning the FPO proceeds, it 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,” Gautam Adani, Chairman, Adani Enterprises said.

“The interest of the investors in paramount and hence to insulate them from any potential financial losses, the board has decided not to go ahead with the FPO,” he added.

The company said that its balance sheet is healthy with strong cashflows, secure assets and an impeccable track record of servicing debt. This decision will not have any impact on the existing operations and future plans, the statement however added.

On Monday, International Holding Company (IHC), the diversified Abu Dhabi-based conglomerate, announced investment of $400 million (Rs 3,200 crore) into the FPO through its subsidiary Green Transmission Investment Holding RSC Ltd.