Business Economy

Gautam Adani statement on cancelling the FPO

After a fully subscribed FPO (Follow on Public Offer), Gautam Adani asserted that the decision to withdraw the FPO might have surprised many but the board opined that proceeding with the FPO would be morally wrong. He said that it would not be morally correct to proceed with the FPO. In my humble journey as an entrepreneur I have been blessed to receive good man support from all stakeholders and particularly the investor community. It is important for me to confest that whatever little I have achieved in life is due to the faith and trust reposed by them.

Adani said, “the interest of my investors is paramount and everything is secondary”. We have withdrawn the FPO; this decision will not have any impact on our existing operations as well as our future plans.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 execution and delivery of projects. The fundamentals of our company are very strong. He said, Our balancity is healthy and assets are robust. We have an impeccable track record of fulfilling our debt obligations. We will continue to focus on long term value creations and growth will be managed by our internal approvals. Once the market is established we will review our capital market strategy.

We have a strong focus on ESG and every business will continue to create value in a responsible way. The strongest validation of governance principles comes from several international partnerships we have built across our different entities. I take this opportunity to thank our investment bankers, shareholder from within and outside the country for giving unflinching support to the FPO. We are very confident that we will continue to get support in the future also.

On 1 February 2023, The Board of Adani Enterprises Ltd., (AEL) decided not to go-ahead with the fully subscribed Follow-on Public Offer (FPO). Given the unprecedented situation and the current market volatility the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction. Despite the same, Gautam Adani, once Asia’s richest man slipped in the billionaire ranking of both Bloomberg and Forbes, and has been pushed out of the top ten ranks. His statement came just ahead of today’s market hours. On budget day, February 1, shares of Adani enterprises crashed 34.72 percent to hit a day low of Rs 1,942. The stock, moreover. Is down over 49 percent from its 52-week high of Rs 4,189.55.

About the author

Trilok Singh

Founder and CEO: Youth Darpan, IASmind.com, Post A2Z Social Media Apps/Messenger/Web, Micro BlogIN (Microblogging Platform) and Seva A2Z (Shopping). Masters in Political Science, Kirori Mal College, Faculty of Social Science, University of Delhi, India. Masters in Journalism and Mass Communication (MJMC) from Galgotias University. Post Graduate Diploma in Journalism and Mass Communication from International School of Media and Entertainment Studies (ISOMES), News 24 Campus.

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