According to businessman Gautam Adani, economic uncertainty was a major factor in his decision to cancel a fully subscribed share sale of the group’s flagship company.
Since a U.S. short seller made serious accusations, the value of the stocks of the Adani Group has dropped by almost $90 billion.
On Tuesday’s final day of the share closing, Adani Enterprises Ltd.’s 20,000 crore follow-on stock offering succeeded in attracting investors. The business made the decision to cancel the FPO and reimburse the shareholders late on Wednesday.
“The removal of the FPO yesterday would have startled many after a fully subscribed FPO.” However, in light of the market’s turbulence from yesterday, the board strongly believed that moving forward with the FPO would not be morally appropriate, Mr. Adani said in a speech to investors on Thursday.
He said that the choice will not have any effect on current operations or long-term plans. “We will continue to put a priority on efficient and timely completion and delivery.”
Mr. Adani argued that the company’s foundation is solid.
“Our assets are strong, and our balance sheet is strong.” Our EBITDA ratios and cash flows have been excellent, and we have a perfect history of repaying our debts. Development will be controlled by internal accruals as we continue to concentrate on long-term value development.
After the market recovers, the group will evaluate its capital market approach, according to Mr. Adani.
“We place a high priority on ESG, and each of our businesses will continue to add value in an ethical manner.” “The numerous foreign collaborations we have established across our various organisations provide the strongest confirmation of our governance practices,” he continued.