It is not ethically correct to proceed with this: Gautam Adani comes out after withdrawing Rs 20,000 crore FPO
Adani Enterprises announced the withdrawal of its Rs 20,000 crore FPO on Wednesday night.
Adani Enterprises announced the withdrawal of its Rs 20,000 crore FPO on Wednesday night. Along with this, an announcement was also made on behalf of the group to return the money of the investors. Now Gautam Adani himself has appeared in the video message regarding this announcement. He has said that “the FPO was successfully closed on Tuesday, despite a lot of volatility in the company's stock in the last week. Your trust in the company and its business is our confidence booster for which we are grateful to you.”
Adani said that today there were unexpected fluctuations in the company's stock. “In view of the extraordinary circumstances, the board of directors of the company has decided that it would not be ethically sound to go ahead with the FPO. The interest of the investors is of paramount importance to us and to protect them from any possible loss, the Board of Directors has decided to withdraw the FPO.”
Significantly, the FPO which has been withdrawn by Adani was fully subscribed till Tuesday. Despite this, Hindenburg's report is believed to be one of the reasons for withdrawing it and returning the money to the investors, due to which the shares of many Adani Group companies saw a steep fall.
Our balance sheet is very strong
Adani said, our balance sheet and fundamentals are strong. Our EBIDTA and cash flow 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. We will review our capital market strategy once the market stabilizes, he said. 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.