The decision on FPO will not have any impact on our operations: Adani

Adani Enterprises to review capital raising plans once shares stabilise

The Adani group will review the capital raising plans of group flagship Adani Enterprises once its share price stabilises, chairman of the Adani group, Gautam Adani said.

A day after withdrawing its Rs 20,000 crore follow on offer, Adani said the decision to withdraw follow-on public offer (FPO) would have surprised many, but considering the volatility of the market seen on Wednesday, the AEL board strongly felt that it would not be "morally correct" to proceed with the FPO.

In a video message to investors, Adani said he has received overwhelming support from all stakeholders, particularly the investor community in the past and the interest of group's investors is paramount. "Hence to insulate the investors from potential losses we have withdrawn the FPO. 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," he said.

The chairman said the fundamentals of the company are strong and balance sheet is healthy and assets are robust. "Our Ebitda (earnings before interest, tax, depreciation and amortsation) levels and cash flows have been very strong and we have an impeccable track record of fulfilling our debt obligations. We will continue to focus on long term value creation and growth will be managed by internal accruals," he said.

"We have a strong focus on ESG and every business of ours will continue to create value in a responsible way. The strongest validation of our governance principles, comes from several international partnerships we have built across our different entities," he said.

Adani said despite the volatility in the stock over the last week, investors faith and belief in the company, its business and its management has been extremely reassuring and humbling.

In another statement, the group said their promoters have not pledged any stake in either Ambuja Cements or ACC as a part of the acquisition financing.

"We would like to clarify that none of the shares of Ambuja or ACC have been pledged by promoters. The promoters have only provided non-disposal undertaking and accordingly, there is no requirement of providing any top-up of shares of Ambuja and ACC or cash top-up under the acquisition financing raised last year," the statement said.