Interest of my investors is paramount: Gautam Adani after calling off FPO

A day after deciding not to goahead with the fully subscribed Followon Public Offer FPO Adani Enterprises Ltd chairman Gautam Adani on Thursday said it would not be morally correct to go ahead with the Rs 20000crore share in the current market conditionAfter a fully subscribed FPO yesterdays decision of its withdrawal 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 Adani said in his address to investors after withdrawal of the fully subscribed FPOAdani said in his humble journey of over four decades as an entrepreneur I have been blessed to receive overwhelming support from all stakeholders particularly the investor community It is important for me to confess that whatever little I have achieved in life is due to the faith and trust reposed by them I owe all my success to themFor me the interest of my investors is paramount and everything is secondary Hence to insulate the investors from potential losses we have withdrawn the FPO he saidThis decision he said will not have any impact on our existing operations and future plans We will continue to focus on timely execution and delivery of projectsAlso Read Going ahead not morally correct Adani Enterprises calls off fully subscribed FPO to return money to investorsThe fundamentals of our company are strong Our balance sheet is healthy and assets robust Our EBIDTA levels and cash flows have been very strong and we have an impeccable track record of fulfilling our debt obligations We will continue to focus on long term value creation and growth will be managed by internal accruals Adani saidOnce the market stabilizes we will review our capital market strategy he saidWe have a strong focus on ESG and every business of ours will continue to create value in a responsible way The strongest validation of our governance principles comes from several international partnerships we have built across our different entities Adani saidI take this opportunity to thank our investment bankers institutional investors and shareholders from within and outside the country for giving unflinching support to the FPOThanking 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 humblingShares of Adani Enterprises nosedived sharply on Wednesday a day after its followon public offer closed for the subscription The shares of Adani Group flagship company closed at Rs 217975 with a sharp decline of 2670 per cent Its intraday low was Rs 19412 over 30 per cent lower than Tuesdays settlement price On Tuesday the last day for subscription the followon public offer FPO issued by Adani Enterprises was fully subscribedA followon public offering FPO is the issuance of shares to investors by a company listed on a stock exchange after its initial public offeringsData showed the demand for the FPO was led by noninstitutional investors and they subscribed to the shares 326 times The portion for institutional investors was also oversubscribedOn Monday an Abu Dhabibased diversified conglomerate International Holding Company announced that it will invest about USD 400 million AED 14 billion into the Adani Enterprises followon public offer FPO through its subsidiary Green Transmission Investment Holding RSC LimitedAdani Enterprises had filed a red herring prospectus with the markets regulator Securities and Exchange Board of India SEBI for the Rs 20000 crore followon public offer FPO the largest ever in India There were concerns that the FPO may not receive a strong response from investors amid a report by a USbased Hindenburg Research that surfaced on January 24 which claimed the Adani Group of having weak business fundamentals among othersThe USbased firm in its report raised concerns about shares of Adani group companies having a possibility of declining from their current levels owing to high valuations In response Adani Group on Sunday said the recent report by Hindenburg Research was not an attack on any specific company but a calculated attack on India its growth story and ambitions It added the report was nothing but a lie