Hindenburg’s report has led to a stock crash in Adani Group’s seven listed companies, which have lost more than $100 billion combined, or about half of their market value.
Nirmala Sitharaman [File Photo]
Union Finance Minister Nirmala Sitharaman today refuted suggestions that India’s economic image has been affected in the wake of the Adani Group’s recent decision to pull out Rs 20000 crore FPO amid serious charges of financial wrongdoings.
Regulators, which were independent of the government, would do their job and the FPO pullout would not have any impact on the perception of India, she said at a post-Budget conference in Mumbai. “Regulators will do what is appropriate so the market is well regulated,” she added.
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Pointing out that this was not the first time that an FPO was taken back, she wondered how many times this has affected the image of the country. The minister said there were “fluctuations” in every market but the accretion over the last few days has established the fact that the perception of both India and its inherent strengths was intact.
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The finance minister noted that the RBI has already spoken out on the issue and referred to yesterday’s statement, which stated that the banking sector was resilient and stable.
To a query on the LIC’s exposure to the Adani Group, Sitharaman said, “LIC have themselves come out on the issue about their exposure to the Company (Adani).” The government, she said, wanted to sustain the recovery which had kept India at a good level of growth.
“We want to sustain the recovery which has kept India at a good level of growth, which no country – except for one because it’s fuel rich – has managed to reach,” she added.
Her statement comes after US short-seller Hindenburg Research, which makes money by betting on shares falling, accused the Adani Group of improper use of tax havens and stock manipulation, while also raising concerns over high debt levels.
The Adani Group has denied the allegation of stock manipulation, saying it has “no basis” and was the result of ignorance about Indian law.
Hindenburg’s report has led to a stock crash in Adani Group’s seven listed companies, which have lost more than $100 billion combined, or about half of their market value.
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