Strong Balance Sheet, Healthy Cash Flows, Robust Assets: Gautam Adani After Scrapping Rs 20,000 Cr 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,” read the statement.

New Delhi: Even as the Rs 20,000 crore Adani Enterprises follow on public offer (FPO) was successfully closed on Tuesday, the flagship Adani Group company decided not to go ahead with the fully subscribed FPO. The successful completion of the FPO during tough times is definitely a mark of investor confidence in Gautam Adani and his business empire.

In what came as a surprise to many, a statement released late yesterday evening by Adani Enterprises announced the decision not to go ahead with the 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,” read the statement.

In the statement, the chairman of Adani Enterprises Gautam Adani said the following:

“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 has been extremely reassuring and humbling. Thank you.

However, today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the Company’s board felt that going ahead with the issue would not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the Board has decided not to go ahead with the FPO.

We are working with our Book Running Lead Managers (BRLMs) to refund the proceeds received by us in escrow and to also release the amounts blocked in your bank accounts for subscription to this issue.

Our balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt. This decision will not have any impact on our existing operations and future plans. We will continue to focus on long term value creation and growth will be managed by internal accruals. Once the market stabilizes, we will review our capital market strategy. We are very confident that we will continue to get your support. Thank you for your trust in us.”

Apart from that earlier today, Gautam Adani shared a video statement clarifying that the decision to cancel the fully subscribed FPO was taken keeping investors’ interest paramount.

#WATCH | After a fully subscribed FPO, yday’s decision of its withdrawal would’ve surprised many. But considering volatility of market seen yday, board strongly felt that it wouldn’t be morally correct to proceed with FPO:Gautam Adani, Chairman, Adani Group

(Source: Adani Group) pic.twitter.com/wCfTSJTbbA

— ANI (@ANI) February 2, 2023

“The fundamentals of our company are very strong, our balance sheet is healthy, and assets, robust. Our EBIDTA levels and cash flows have been very strong”, said Gautam Adani.