'Wouldn’t Be Morally Correct': Gautam Adani On Calling Off FPO Worth Rs 20,000 Crores

Gautam Adani said that decision to withdraw the offering was considered after volatility seen in market and that “the board felt that it would not have been morally correct to proceed with FPO”. 

Adani Enterprises Founder Gautam Adani ( Image Source :ANI )

New Delhi: A day after Adani Enterprises retracted its Follow-On Public Offering (FPO) of shares worth Rupees 20,000 crore, its chairman, Gautam Adani said that decision to withdraw the offering was considered after volatility seen in market and that “the board felt that it would not have been morally correct to proceed with FPO”. 

“After a fully subscribed FPO, yesterday’s decision of its withdrawal would've surprised many. But considering the volatility of the market seen yesterday, the board strongly felt that it wouldn't be morally correct to proceed with FPO,” Adani said in a video message. 

#WATCH | After a fully subscribed FPO, yday’s decision of its withdrawal would've surprised many. But considering volatility of market seen yday, board strongly felt that it wouldn't be morally correct to proceed with FPO:Gautam Adani, Chairman, Adani Group

(Source: Adani Group) pic.twitter.com/wCfTSJTbbA

— ANI (@ANI) February 2, 2023

“For me, the interest of my investors is paramount and everything is secondary. Hence to insulate investors from potential losses we've withdrawn FPO. This decision will not have an impact on our existing operations and future plans. We'll continue to focus on timely execution,” he added. 

The comapny's decision to withdraw the FPO came amid the ongoing row over the Hindenburg Reasearch that has accused the Adani Group of using tax havens and flagged debt concerns in a report. 

"Once the market stabilizes, we'll review our capital market strategy. We've a strong focus on ESG & every business of ours will continue to create value in responsible way. The strongest validation of our governance principles, comes from our several int'l partnerships," siad the business tycoon in his statement. 

"Our balance sheet is healthy and assets, robust. Our EBIDTA levels and cash flows have been very strong and 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 added. 

Adani Group stocks have been under stress since Hindenburg in its research report titled 'Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History', questioned the accounting and corporate governance practices of Adani Group, and also raised the issue of heavy debt last week.

The allegations were strongly refuted by the Adani Group that said Hindenburg’s report is timed with a "mala fide intention" to damage Adani Enterprises FPO.