Lagatar24 Desk
New Delhi, Feb 2: Chairperson of Adani Group, Gautam Adani on Thursday released a statement saying that the ‘interest of my investors is paramount and everything is secondary’ as he explained the decision to call off India’s biggest FPO, which was fully subscribed.
For me, the interest of my investors is paramount & everything is secondary. Hence to insulate investors from potential losses we've withdrawn FPO. This decision will not have impact on our existing operations and future plans. We'll continue to focus on timely execution: G Adani pic.twitter.com/yXli35TOgL
— ANI (@ANI) February 2, 2023
Gautam Adani released video statement saying, “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.”
“Considering the volatility of the markets yesterday, the Adani Board strongly felt it would not have been morally correct to proceed with the FPO,” he added.
Adani also said that the Board is working with our Book Running Lead Managers (BRLMs) to refund the proceeds received in escrow and to also release the amounts blocked in bank accounts for subscription to this issue.
As, per the sources in the market, the Follow on Public Offer (FPO) was fully subscribed on the final day of the subscription on Tuesday with help from some big Indian conglomerates but the company called off its Rs 20,000 crore share sale on Wednesday night due to prevailing market condition.
The board announcement came hours after the market regulator apparently launched a full scale probe into the allegations levelled in the U.S. based short-seller Hindenburg Research’s report.
According to Rueters, the Securities and Exchange Board of India (SEBI) is investigating any suspected violations in the FPO and is reportedly looking into allegations that Adani entities failed to declare related party transactions as required and used extensive network of offshore entities based in tax havens and the allegations dismissed by the Adani Group.
