Union Finance Minister Nirmala Sitharaman spoke to media about the recent Adani crisis after interacting with stakeholders post-budget.
On Wednesday, Adani Enterprises abruptly decided to cancel its Follow-on Public Offer worth ₹20,000 crore.
Minister Sitharaman reassured the public that the cancelation of Adani’s FPO had no impact on India’s economy or reputation. She also stated that the country’s regulators are strict on governance practices and that one instance, no matter how widely discussed, would not reflect poorly on the financial markets’ governance.
However, the cancelation has led to a drop in Adani Group’s market cap of 47.44% to reach Rs10,07,999 crore on February 3, causing Gautam Adani to fall out of the top 20 richest people list.
Fund Manager Sat Duhra warned that the impact could broaden if it triggers a negative mood shift in the stock market.
Since Hindenburg Research accused the Adani Group of stock manipulation and accounting fraud on January 24, the company’s market worth has decreased by $108 billion. Despite this, Minister Sitharaman assured that India would still maintain high investor confidence.
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