NEW DELHI: Union Finance Minister Nirmala Sitharaman said here on Saturday that the cancellation of Adani Enterprises’ next public offering (FPO) will not have any impact on the economy and will not affect the image of the economy.
Answer questions about the incident of
Adani Corporation stocks, the finance minister said, “Regulators will do their job and they are independent of the government. What they do is up to them. Keeping the market regulated and in top shape is Sebi’s role, and it has done that.”
Sitharaman said the RBI has released its statement on the Adani issue, and the public sector banks and the LIC have released a statement about their exposure to the group.
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Adani Group companies lose more than 100 billion USD: What you need to know
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Shares of Adani Group companies have been in free fall since Hindenburg published reports alleging stock manipulation, etc.
Adani Group’s market losses have grown to more than $100 billion, raising concerns about their potential systemic impact.
Since the Hindenburg report on January 24, the Adani group companies have lost almost half of their combined market value.
The Adani Group led by Gautam Adani, whose stock has been one of the main drivers of the stock market for the past 3 years, is now finding it difficult to stay in the positive territory since the last 6 days.
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On 24 January, the day Hindenburg published this report, one share of Adani Enterprise was priced at Rs 3,442.75 at the end of the day’s trading. Today, the stock is priced at Rs 1,564.7, which is a decrease of 54.55% in the last 6 sessions.
Adani Ports is down 39%, Adani Power 26.43%, Adani Transmission 43.49%, Adani Green Energy 45.75%, Adani Total Gas 56% and Adani Wilmar down 26.46%.
Adani, 60, also no longer Asia’s richest person, has dropped in the ranking of the world’s richest people to 17th place with his net worth nearly halving to $64 billion in a single year. week, according to the Forbes list.
Hindenburg’s report last week alleges the misuse of offshore tax havens and manipulation of shares of the Adani Group. It also raised concerns about the high debt and valuations of seven listed Adani companies.
Adani Group has denied the allegations, saying the short seller’s allegation of stock manipulation is “groundless” and stems from a lack of understanding of Indian law.
In its official response to the Hindenburg report, the Adani Group likened these damaging allegations to a “calculated attack” against India, its institutions and growth story. this country.
Adani Group has decided not to go ahead with its Rs 20,000 FPO for the benefit of its subscribers. FPO stopped working one day after being fully registered.
Gautam Adani said that given the unprecedented volatility of the market, the company’s board felt that continuing with the FPO would not be “ethically correct”.
RBI sought detailed information on Adani Group loans, according to market conditions.
Sebi has begun to look at the continued decline in Adani Group stock. It is also looking into any possible irregularities in the sale of shares of its flagship company
Swiss lender Credit Suisse has stopped accepting bonds from Adani group companies as collateral for margin lending. Citigroup’s asset unit also said it has stopped extending margin loans to its customers for Adani securities.
The decline in share prices of Adani group companies culminated in the cancellation of the FPO of the group’s flagship company, Adani Enterprises’. On Friday, FM said in an interview with a news channel that no matter how much the issue is discussed globally, it is not an indication that financial markets are regulated. how good.
Speaking to the media on Saturday, Sitharaman said the cancellation of the FPO would not affect the fundamentals of the economy. “How did our foreign exchange reserves grow by $8 billion? The macroeconomic fundamentals or the image of our economy are not affected,” she said.
Sitharaman says that every market has seen volatility, FPO cancellations, and the withdrawal of foreign institutional investors. “How many times has the FPO been revoked and how many times has the image of the country been affected,” she asked.
Hindenburg vs Adani: ‘Regulators will do what needs to be done,’ says Nirmala Sitharaman