Gautam Adani Cites ‘moral’ Reason To Withdraw FPO Amid Stock Volatility

In his first video statement after calling off Adani Group's fully subscribed Follow-on Public Offer, Gautam Adani, Chairman of Adani Enterprise Ltd, said that the board felt that it would not have been morally correct to proceed with the FPO. Gautam Adani underscored that while the withdrawal may have surprised many, the decision had been taken considering the volatility of the market.

"After a fully subscribed FPO, yesterday's decision of the withdrawal would have surprised many but considering the volatility of the market seen yesterday, our board strongly felt that it would not have been morally correct to proceed with the FPO," he said.

"In my humble journey of over four decades as an entrepreneur, I have been blessed to receive overwhelming support from all stakeholders and 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 them," he added. 

'Interest of investors paramount': Gautam Adani

The Adani Group Chairman further stated that for him, the interest of his investors was paramount and everything else, secondary. "Hence to insulate the investors from potential losses we have withdrawn the FPO. This decision will not have any impact on our existing operations as well as our future plans. We will continue to focus on timely executions and delivery of projects," he stated. 

"The fundamentals of our company are very strong, our balance sheet is healthy and assets robust. Our EBITDA levels and cash flows have been very strong and we have an impeccable track record of fulfilling our debt obligations. We'll continue to focus on our long-term value creation and growth will be managed by our internal accruals. Once the market stabilises, we will review our market strategy," he added. 

The industrialist also assured that every business of the Adani Group would continue to create value in a responsible way and that the strongest validation of their governance principles, came from the several international partnerships that they have built across entities. 

"I take this opportunity to thank our investment bankers, institutional investors, and stakeholders from within and outside the country for giving unflinching support to the FPO. Despite the volatility in the stock over the last week, your faith and belief in the company, this business, and the management has been extremely reassuring and humbling for all of us. We are very confident that we will continue to get support in the future also. Thank you again for putting your trust in us. Jai hind," he concluded.

Adani Group calls off FPO citing 'unprecedented situation'

Despite the Rs 20,000 crore share sale of Adani's flagship firm being fully subscribed, the group called off its FPO on Wednesday, February 1. The decision was taken by the Board of Directors of the Company at its meeting in the interest of its subscribers. As many as 4.62 crore shares were sought as against an offer of 4.55 crore. 

Following the move, Gautam Adani, in a statement said, "The Board takes this opportunity to thank all the investors for your support and commitment to our FPO. The subscription for the FPO closed successfully yesterday. Despite the volatility in the stock over the last week, your faith and belief in the Company, its business, and its management have been extremely reassuring and humbling Thank you."