Gautam Adani Says FPO Withdrawal Intended To Insulate Investors From Potential Losses
The chairman of the ports-to-mining conglomerate says that the decision will not have any impact on existing operations.
Billionaire Gautam Adani said the decision to call off India's largest follow-on share sale by Adani Enterprises Ltd. was to "insulate the investors from potential losses."
"After a fully subscribed FPO, the decision to withdraw it yesterday 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," he said in an address to company shareholders on Thursday.
The chairman of the ports-to-mining conglomerate added that the decision will not have any impact on existing operations or future plans. "We will continue to focus on the timely execution and delivery of projects. The fundamentals of our company are strong. Our balance sheet is healthy, and our assets are robust," he said. "Our Ebitda levels and cash flows have been very strong, and we have an impeccable track record of fulfilling our debt obligations."
"For me, the interest of my investors is paramount and everything is secondary," he said.
The company's FPO was fully subscribed even as the stock remained volatile after Hindenburg Research alleged "stock manipulation and fraud". In response, the group's Chief Financial Officer Jugeshinder Singh termed the report a "malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India’s highest courts".
The stock price of the company had fallen below the offer price after the Hindenburg report.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
