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‘We do not…’: CEA Nageswaran on Adani- Hindenburg row
- The CEA cited that the matter was between the markets and the group.
India's chief economic adviser on Tuesday refused to comment on the Adani Group and Hindenburg row wherein the U.S. short seller questioned the business practices of the Indian conglomerate and following this, the business house saw a sharp drop in share prices.
"We do not comment on any single company", V. Anantha Nageswaran said at a news conference, adding that the matter was between the markets and the group.
Hindenburg alleged that its two-year investigation found the Adani Group “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades" and called out the conglomerate’s “substantial debt." The Adani Group, meanwhile, has said it’s exploring legal action against the research firm, calling Hindenburg’s report “maliciously mischievous," “bogus" and “unresearched."
U.S. short seller released its report just days before Adani Enterprises launched India’s biggest-ever primary follow-on public offering that’s seeking to fund capital expenditures and to pay down the debt of its various units.
Following the report, the group lost more than $50 billion in market value in two sessions, costing Adani himself in excess of $20 billion, or about one-fifth of his total fortune, according to the Bloomberg Billionaires Index.
However, despite the controversial report, Gautam Adani's flagship venture Adani Enterprises Ltd saw a $2.5 billion share sale and was fully subscribed.
The follow-on public offering (FPO) is critical for Adani, not just because it will help cut the group's debt, but because its success will be seen as a mark of investor confidence as he faces one of his biggest business and reputational challenges.
(With inputs from agencies)
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First Published:31 Jan 2023, 04:42 PM IST
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