“Once the market stabilizes, we will review our capital market strategy,” Adani said in a recorded video address to investors released on Thursday. “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.”
Video: Gautam Adani says Interest of investors paramount, everything else secondary, after withdrawing FPO
A crisis in market confidence has engulfed the tycoon’s companies and Adani Enterprises Ltd. bonds plunged to distressed levels in US trading. The company abruptly pulled a record domestic stock offering after Adani Group shares saw a $92 billion market crash in less than a week. Banks either want more collateral for loans, or are scrutinizing the value of the company’s debt to lend against.
Hindenburg Research last week accused the Adani group of “brazen” market manipulation and accounting fraud, setting off an intense selloff in the stocks. The industrialist has repeatedly denied the allegations, with his conglomerate calling the report “bogus,” and threatened legal action.
“The fundamentals of our company are strong,” Adani said in the video, his first public comments on the crisis. “Our balance sheet is healthy and assets, robust. Our EBITDA 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.”