New Delhi: Opposition parties erupted in parliament on Thursday, demanding a discussion on the Adani Enterprises group and the potential risks it poses to Indian investors following a US short-sellers attack last week.
According to Reuters, the group’s cumulative market capitalization loss since US whistleblower Hindenburg Research is $100 billion. report good on 24 January which claimed widespread financial misconduct at the company.
Lok Sabha proceedings were initially adjourned till 2 pm amid uproar in Parliament on Thursday morning. Later, as the protests spread to the Rajya Sabha, both the Houses were adjourned for the day.
Congress president Mallikarjun Kharge later told reporters, “We have given a notice of ‘suspension of business’ under Rule 267 to discuss the issue of investment by LIC, public sector banks and financial institutions in companies that have lost market value.” , thereby putting people’s hard-earned money at risk.” Crores of Indians.”
The Congress and other parties have demanded a probe into the Adani crisis by a Joint Parliamentary Committee (JPC) or a Supreme Court-monitored panel, which would report to them on a day-to-day basis.
It is learned that the Reserve Bank of India has already asked other banks for details of their exposure to Adani group companies.
Shares of Adani Group, which have tumbled ever since Hindenburg Research pointed out alleged fraud in the company, fell further on Thursday after an oversubscribed Rs 20,000 crore follow-on public offer (FPO) by Chairman Gautam Adani. Went.
While withdrawing the FPO on Wednesday – which was 112% subscribed – Gautam Adani had said it would not be “ethically right” to go ahead in the current market situation.
“After a fully subscribed FPO, the decision to withdraw it yesterday must have surprised many. But considering the market volatility witnessed yesterday, the Board strongly felt that it would not be ethical to go ahead with the FPO.
Asserting that the decision will protect investors from potential losses, Adani assured that the canceled FPO will not affect the company’s current operations and future plans.
He also said that the company will review its capital market strategy once the market stabilises.
Read also: Adani Group’s surprise move – cancels fully subscribed Rs 20,000 crore FPO ‘to save investors’