Gautam Adani, in a video statement early Thursday morning, said that investor interest is paramount, which was why they cancelled the follow-on public offer (FPO) after it was fully subscribed. He said that it would “not be morally correct” to proceed with the FPO, considering the volatility of the market. Adani also said that in his over four decades as an entrepreneur, he has been blessed with overwhelming support from all stakeholders.
Adani said that the decision to withdraw the FPO might have surprised many but the board opined that proceeding with the FPO would be morally wrong. “In my humble journey of over 4 decades as an entrepreneur I have been blessed to receive overwhelming support from all stakeholders 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. For me, the interest of my investors is paramount and everything is secondary,” he said, adding that they decided to insulate the investors from the potential losses.
The industrialist also assured the investors that there would not be any impact on their existing operations and future plans. In his statement, Adani said that the fundamentals of the Adani Group are strong and the balance sheet healthy. Once the market stabilises, they would review their capital market strategy, said Adani.
Adani’s statements come just ahead of Thursday’s market hours. On Budget day, February 1, shares of Adani Enterprises crashed 34.72 per cent to hit a day low of Rs 1,942. The stock, moreover, is down over 49 per cent from its 52-week high of Rs 4,189.55.
However, Credit Suisse and Citigroup’s wealth arm, on Wednesday and Thursday respectively, announced that they will no longer accept Adani Group securities as collateral for margin loans.
Following all the turmoil, Gautam Adani, once Asia’s richest man slipped in the billionaire rankings of both Bloomberg and Forbes, and has been pushed out of the top 10 ranks.