Adani Group chairman Gautam Adani addressed the recent cancellation of the company’s secondary share sale, stating that the board felt it would “not be morally incorrect” to proceed with the FPO.
What Happened? Adani in a recorded video address on early Thursday spoke to investors regarding the sudden cancellation of the company’s follow-on public offering (FPO) on late Wednesday, stating that the company’s board felt the move would help “insulate the investors from potential losses.”
Adani added the board will review the conglomerate’s capital market strategy once the market stabilises.
Championing the support the Adani Group has received from investors amid the ongoing stock plunge, Adani mentioned, “This decision will not have any impact on our existing operations and future plans. We will continue to focus on timely execution and delivery of projects."
The Adani Group withdrew the ₹20,000 crore fully subscribed FPO of Adani Enterprises on Wednesday after share prices across the group’s listed entities saw huge dips as markets closed.
“Our EBIDTA levels and cash flows have been very strong and we have an impeccable track record of fulfilling our debt obligations. We’ll continue to focus on long-term value creation & growth will be managed by internal accruals,” he said. began last week.
It is worth noting that this is the first time Adani has himself publicly commented on the FPO or the share plunge since U.S. short seller Hindenburg Research laid scathing allegations of corporate fraud against his group of companies.
Price Action:
This is how the Adani Group shares traded after markets opened on Thursday.
Adani Enterprises shares traded 2.85% lower at ₹2,068.10.
Adani Green Energy was down 10% to trade at ₹1,038.05.
Adani Ports & SEZ was down 2.65% to trade at ₹479.10.
Adani Power shares traded 5% lower at ₹202.15.
Adani Total Gas shares traded 10% lower at ₹1711.50.
Adani Wilmar shares plunged to ₹421.45, down 5%.
Adani Transmission shares were down 10% to ₹1,557.25.
Ambuja Cement shares traded 4.75% higher at ₹350.50. ACC shares traded 1.73% higher at ₹1,876.40.
NDTV was down 5% to trade at ₹222.85.
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