"Going Ahead Not Morally Correct": Gautam Adani On Cancelled FPO

Adani Enterprises Ltd has called off its Rs 20,000-crore share sale, saying it would not be "morally correct" in the current market condition. Adani Enterprises chief Gautam Adani has said although the FPO closed successfully yesterday, "the market has been unprecedented (today), and our stock price has fluctuated over the course of the day".."Given these extraordinary circumstances, the Company's board felt that going ahead with the issue will not be morally correct," he said in a statement.."The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO," he added..Thanking the investors, he said, "Despite the volatility in the stock over the last week, your faith and belief in the Company, its business and its management has been extremely reassuring and humbling"..Shares of the Adani Group firms had slumped after a report by US-based short seller Hindenburg Research which flagged concern about the group's high debt levels and its suspected improper use of tax havens. The report was released on January 24 -- the day the Rs 20,000-crore follow-on share sale opened for anchor investors..Adani Enterprises has rejected the allegations. In a statement on Sunday, it said the conduct of the American firm "is nothing short of a calculated securities fraud under applicable law".."This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," the statement said.."Hindenburg has not published this report for any altruistic reasons but purely out of selfish motives and in flagrant breach of applicable securities and foreign exchange laws," it said. "The report is neither 'independent' nor 'objective' nor 'well researched'.".The FPO was subscribed over 1.25 times for institutional investors, people familiar with the matter have said. .The shares of the flagship firm, however, nosedived again on Wednesday in what was the fifth straight day of losses. The Adani Enterprises stocks were down over 26 per cent in the trading session..In the statement, Mr Adani said their "balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt"..The decision to call off the share sale "will not have any impact on our existing operations and future plans," he said.."We will continue to focus on long term value creation and growth will be managed by internal accruals. Once the market stabilizes, we will review our capital market strategy. We are very confident that we will continue to get your support. Thank you for your trust in us," he added in the statement..Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.

"Going Ahead Not Morally Correct": Gautam Adani On Cancelled FPO

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