‘No impact on country’s reputation': FM Sitharaman on Adani row
1 min read . Updated: 04 Feb 2023, 02:51 PM IST
PremiumAdani crisis: US short seller Hindenburg Research in a report on January 24 had publsihed a report on Adani Group accusing it of improper use of offshore tax havens and flagging concerns about high debt that sent the Group stocks to crash.
Union Finance Minister Nirmala Sitharaman on Saturday reacted to the Adani crisis while speaking to media persons after holding an interaction with stakeholders post-budget. Adani Enterprises Ltd. abruptly decided to withdraw its FPO worth ₹20,000 crore on Wednesday evening.
She said that the Wednesday withdrawal of Adani Enterprises' FPO (Follow-on Public Offer) had no impact on the country's macroeconomic fundamentals and reputation.
Gautam Adani has also been moved out of the top 20 richest people's list after the share price falls on February 3 is considered.
On February 3, the total market cap of Adani Group slipped 47.44% to reach Rs10,07,999 crore from ₹19,18,056 crore on January 24, the day the Hindenburg report was released.
Fund Manager Sat Duhra said that Adani's wipeout has the potential to broaden if it drives a bigger mood shift. “The Indian stock market indices are driven in large part by a small group of companies and any change in sentiment and flows will have a disproportionate impact on indices as more liquid names are sold first."
Since Hindenburg Research accused the Adani Group of stock manipulation and accounting fraud in a report on January 24, the company's market worth has decreased by $108 billion.
FM Sitharmana on Friday stated, “Our regulators are normally very-very stringent about governance practices and therefore, one instance, however much talked about globally it may be, is not going to be indicative of how well financial markets are governed."
She also assured that India would continue to enjoy high investor confidence.
India's ministry of corporate affairs has started a preliminary review of Adani Group's financial statements and other regulatory submissions made over the years, two senior government officials told Reuters on Friday.
US short seller Hindenburg Research in a report on January 24 had publsihed a report on Adani Group accusing it of improper use of offshore tax havens and flagging concerns about high debt that sent the Group stocks to crash.
The group holds short positions in Adani group companies. Hindenburg Research said evidence that the Group has engaged in a 'brazen stock manipulation and accounting fraud scheme over the course of decades.'
(With Reuters inputs)
