Gautam Adani speaks for first time after scrapping FPO amid Hindenburg row
- Adani Group decided not to go-ahead with the fully subscribed Follow-on Public Offer (FPO)
Billionaire Gautam Adani on Thursday said it would not be "morally correct" to go ahead with the ₹20,000-crore share of Adani Enterprises in the current market condition, a day after deciding not to go-ahead with the fully subscribed Follow-on Public Offer (FPO). A FPO is the issuance of shares to investors by a company listed on a stock exchange after its initial public offerings.
"After a fully subscribed FPO, yesterday's decision of its withdrawal would have surprised many. But considering the volatility of the market seen yesterday, the board strongly felt that it would not be morally correct to proceed with the FPO," Gautam Adani said in his address to investors after withdrawal of the fully subscribed FPO.
“Our balance sheet is healthy and assets, robust. Our EBIDTA levels & cash flows have been very strong & we've an impeccable track record of fulfilling our debt obligations. We'll continue to focus on long term value creation & growth will be managed by internal accruals,” he said.
Adani group stocks, which have been under pressure in last five sessions amid concerns over the US-based short seller Hindenburg Research's report, extended their slide on Thursday after the group decided to call off the share sale.
Hindenburg Research last week accused the Adani group of “brazen” market manipulation and accounting fraud, setting off an intense selloff in the stocks. The industrialist has repeatedly denied the allegations, with his conglomerate calling the report “bogus,” and threatened legal action.
"For me, the interest of my investors is paramount & everything is secondary. Hence to insulate investors from potential losses we've withdrawn FPO. This decision will not have impact on our existing operations and future plans. We'll continue to focus on timely execution," he added.
The decision, he said, will not have any impact on existing operations and future plans. "We will continue to focus on timely execution and delivery of projects. We have a strong focus on ESG and every business of ours will continue to create value in a responsible way. The strongest validation of our governance principles comes from several international partnerships we have built across our different entities," he added.
(With inputs from agencies)
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First Published:2 Feb 2023, 09:50 AM IST
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