Gautam Adani, the billionaire, has stated that the foundation of his conglomerate is strong as he addressed the reason behind the cancellation of a highly-anticipated share sale.
During a speech to investors, Adani stated that the Adani board felt it would be inappropriate to move forward with the Follow-on Public Offer (FPO) due to the market’s volatility. He went on to explain that the protection of his investors is of utmost importance to him, and in order to prevent any potential losses, the FPO was withdrawn.
#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
Adani Enterprises announced the cancellation of their 20,000 crore rupee FPO, which had been fully subscribed, and stated that the proceeds would be returned to investors. Following fraud allegations from a US short-seller, Hindenburg Research, Adani Group companies lost 104 billion dollars in market value.
Despite this, Adani stated that the decision will not affect their existing operations or future plans. The company remains focused on execution and delivery of projects, with a strong balance sheet, healthy assets, and a track record of fulfilling debt obligations. Adani also emphasized their commitment to ESG and creating value in a responsible manner, and expressed gratitude towards their investment bankers and shareholders for their support.
The FPO was unaffected by a negative report from the US-based short-seller, Hindenburg Research, which raised concerns about the group’s high debt levels and suspected use of tax havens. The Adani Group responded with a 413-page statement, calling the report a “calculated attack” on India and its institutions.
What is Adani enterprise and its company distribution ?
Adani Enterprise is a conglomerate of various businesses headquartered in India. Founded and led by billionaire Gautam Adani, the company has diversified interests in ports and logistics, agribusiness, energy, defense, real estate, financial services, and more. Over the years, Adani Enterprise has established itself as one of the leading players in India’s infrastructure sector, and is now expanding its footprint globally.
Adani Ports and Special Economic Zone Limited (APSEZ), a subsidiary of Adani Enterprise, is India’s largest private port operator and has a presence in several countries including India, Australia, and Indonesia. Adani Group’s agribusiness division is also one of India’s largest agri-logistics solutions providers, and has established a strong presence in the country’s grain trade and storage sector.
Adani Enterprise is also one of the largest players in India’s energy sector, with interests in renewable energy, thermal power, and gas distribution. The company’s renewable energy portfolio includes wind and solar power projects, and it has set a target of generating 25 GW of renewable energy by 2025. In the defense sector, Adani Enterprise has formed partnerships with global aerospace and defense companies to manufacture fighter jets, helicopters, and unmanned aerial vehicles in India.