Billionaire Gautam Adani said on Thursday that it would not be “morally right” to go ahead with 20,000 crore stake in Adani Enterprises in the current market condition, a day after it decided not to go ahead with the fully subscribed follow-on public offer (FPO). An FPO is the issue of shares to investors by a company listed on a stock exchange after its initial public offering.
“After a fully subscribed FPO, the decision to withdraw it yesterday must have surprised many. But given the market volatility witnessed yesterday, the Board strongly felt that it was ethical to go ahead with the FPO. Wouldn’t be right.” Gautam Adani said in his address to investors after withdrawing the fully subscribed FPO.
“Our balance sheet is healthy and assets, strong. Our EBITDA levels and cash flows have been very strong and have an impeccable track record of servicing our debt obligations. We will continue to focus on long-term value creation and growth will be managed by internal resources,” he added.
Shares of Adani Group, which were under pressure for the last five sessions amid concerns over a report by US-based short seller Hindenburg Research, extended their fall on Thursday after the group decided to wind up share sales.
Hindenburg Research last week accused the Adani group of “brazen” market manipulation and accounting fraud, leading to a massive selloff in shares. The industrialist has repeatedly denied the allegations, with his group calling the report “fake” and threatening legal action.
“For me, the interest of my investors is paramount and everything else is secondary. Hence we have called off the FPO to save investors from possible losses. This decision will not impact our current operations and future plans. Will continue to focus on.” Timely execution,” he said.
The decision will have no impact on current operations and future plans, he said. “We will continue to focus on the timely execution and delivery of projects. We have a strong focus on ESG and each of our businesses will continue to create value in a responsible manner. The strongest validation of our governance principles comes from our many international partnerships. Is.” built into our various institutions,” he said.
(with inputs from agencies)
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