Gautam Adani’s big decision, canceled 20000 crore FPO, will return investors’ money

New Delhi (Best Hindu News): Adani Group has taken a big decision regarding its FPO. Adani Enterprises said that they are canceling the FPO worth Rs 20,000 crore. At the same time, there has also been talk of returning the money to the investors. Now Gautam Adani himself has appeared in the video message regarding this announcement. Gautam Adani has said in his statement that the decision to withdraw it yesterday after a fully subscribed FPO must have surprised many. But considering the market volatility witnessed yesterday, the Board strongly felt that it would not be ethical to go ahead with the FPO.

He further added, “In my humble journey of over 4 decades as an entrepreneur, I have been fortunate to receive overwhelming support from all stakeholders, especially the investor community. It is important for me to acknowledge that whatever little bit I have achieved in life is because of their faith and trust. I give the credit of all my success to him.

Gautam Adani said, for me the interest of my investors is paramount and everything else is secondary. Therefore, to protect investors from possible losses, we have withdrawn the FPO. This decision will have no impact on our current operations and future plans. We will continue to focus on timely execution and delivery of projects.

The fundamentals of our company are strong. Our balance sheet is strong and our assets are strong. Our EBITDA levels and cash flows have been very strong and we have an impeccable track record of servicing our debt obligations. We will continue to focus on long-term value creation and growth will be managed by internal resources. We will review our capital market strategy once the market stabilises.

He further added, “We have a strong focus on ESG and each of our businesses will continue to create value in a responsible manner. The strongest validation of our governance principles comes from the many international partnerships we have forged within our various institutions. He said, I take this opportunity to thank our investment bankers, institutional investors and shareholders from within and outside the country for their unflinching support to the FPO. Despite the volatility in the stock this past week, your faith and trust in the company, its business and its management has been extremely reassuring and humbling to all of us. We are sure that we will continue to get cooperation in future also.

It may be noted that the FPO which has been withdrawn by Adani was fully subscribed till Tuesday. Despite this, Hindenburg’s report is believed to be one of the reasons for withdrawing it and returning the money to the investors, due to which the shares of many Adani Group companies saw a steep fall.

According to stock market data, 4.55 crore shares were offered under the FPO of Adani Enterprises, while applications were received for 4.62 crore shares. Means 1.12 percent more applications than offers. Nearly three times the bids were received for 96.16 lakh shares reserved for non-institutional investors. While 1.28 crore shares from the eligible institutional buyers’ segment were fully subscribed. However, the response to the FPO was lukewarm from retail investors and company employees.

After last week’s report of ‘Hindenburg Research’, the shares of Adani group companies are continuously declining. This trend of decline continued even on the day of presentation of the budget. The collective market capitalization of the group companies has declined by Rs 7 lakh crore in the last five trading sessions.