New Delhi: Indian businessman Gautam Adani’s problems are increasing. After the report of American firm Hindenburg (Hindenburg Report), the opposition created an uproar in the Parliament yesterday due to the massive decrease in the shares of Adani Group companies (Company). Adani Group’s market capitalization has seen a huge decline due to the decline in stocks. Finance Minister Nirmala Sitharaman has now made a big statement on the uproar created on the Adani case. Finance Minister Nirmala Sitharaman has said that India’s position has not been affected in any way.
Know what Nirmala Sitharaman said
Finance Minister Nirmala Sitharaman has given a statement regarding the Hindenburg report which has been going on for some time now. He has said that our foreign exchange reserves have increased to $8 million in the last two days. He said that FIIs come and go, and FPOs come and go, but the Adani case has not affected India’s image and position. The Reserve Bank has released its statement. He said that FPOs have been withdrawn earlier too. On Friday, opposition members in Parliament were demanding a debate on the Adani group issue and an inquiry by a joint parliamentary committee.
The Reserve Bank is watching
The Reserve Bank of India allayed investors’ concerns by saying that the country’s banking system is stable. The RBI said it is being cautious and continues to monitor the stability of the country’s banking sector. It has been stated by RBI that as a regulator and supervisor, RBI constantly monitors the banking sector and individual banks to maintain financial stability.
FPO worth Rs 20,000 crore was withdrawn
The Adani Group on Wednesday bought its flagship company Adani Enterprises for Rs. 20,000 crore follow-on public offer (FPO) was withdrawn. 20,000 crore FPO was opened for subscription on January 27 and closed on January 31 after being fully subscribed. A follow-on-public offer (FPO) is also known as a secondary offer. This is the process under which companies listed on stock exchanges issue new shares to existing shareholders as well as new investors.
Hindenburg’s charge
Hindenburg’s report came on 24 January. Since then, the shares of Adani Group companies have seen a sharp decline. Hindenburg in its report claimed that the seven listed companies of the Adani Group are 85 percent overvalued. The report also claims that the Adani group has been involved in stock manipulation and money laundering for decades.
9 lakh crore sunk in seven days
The Hindenburg report saw the Adani Group in the last seven trading sessions drop Rs. A market cap of 9 lakh crores has been lost. A total of 10 shares of the Adani Group are listed on the stock market, including Adani Power, Adani Total Gas, Adani Wilmer, Adani Green, Adani Transmission, Adani Ports, Adani Enterprises, Ambuja Cements, ACC and NDTV. These stocks have fallen by up to 50 percent since the Hindenburg report.