Gautam Adani emphasized the paramount importance of investor interests in his decision to cancel the Follow-on Public Offer (FPO) due to market volatility. The Adani Board deemed it unethical to proceed with the FPO considering the current market conditions. By prioritizing the interests of his investors, Adani demonstrated his commitment to responsible and ethical business practices
Billionaire Gautam Adani File Photo
New Delhi: Billionaire Gautam Adani has announced that the interest of his
investors is of utmost importance after the decision to cancel a high-profile
share sale in light of a plunging stock market. In a video statement to
investors, Adani emphasized that he owed all of his success to the support and
trust of the investor community. He also highlighted that the decision to
withdraw the Follow-on Public Offer (FPO) was made to protect the investors
from potential losses.
Adani Enterprises announced the cancellation of the ₹20,000 crore FPO and stated that the proceeds will be returned to investors, following a fully subscribed offering. The move resulted in Adani Group companies losing nearly $86 billion in the stock market, with shares in Adani Enterprises plummeting 28% and Adani Ports and Special Economic Zone dropping 19%.
Adani assured that the decision would not impact the company's existing operations and future plans. He emphasized the strength of the company's fundamentals, including a healthy balance sheet, robust assets, strong EBIDTA levels, and cash flows, as well as an impeccable record of debt obligations. The billionaire also expressed a strong focus on Environmental, Social, and Governance (ESG) principles, and that every business would continue to create
value in a responsible way.
The FPO sailed through despite a critical report by US-based short-seller, Hindenburg Research that raised concerns about the group's high debt levels and suspected improper
use of tax havens. Adani thanked investment bankers, institutional investors, and shareholders for their support during the FPO process.
In conclusion, Gautam Adani emphasized the importance of the interests of investors and the strong fundamentals of the company, as well as a commitment to ESG principles and long-term value creation. The billionaire expressed gratitude for the support received from all stakeholders, particularly the investor community.
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