CEA Nageswaran refuses comment on Adani controversy

NewsDrum Desk
31 Jan 2023

New Delhi, Jan 31 (PTI) Chief Economic Advisor (CEA) V Anantha Nageswaran on Tuesday refused to comment on the impact of the rout in Adani Group shares following a damning report by a US-based short seller.

"We don't comment on a single company in the Economic Survey," he said in an interaction with the media after the Survey was tabled in Parliament.

"Corporate sector as a whole has deleveraged and balancesheets are healthy. So, what happens to one particular corporate group is a matter between markets and the corporate group," he said in response to a question on the Adani Group crisis.

Shares of many Adani Group firms closed in the negative territory on Tuesday, falling for the fourth day running, after Hindenburg Research in a report made a litany of allegations, including fraudulent transactions and share price manipulation, at the Gautam Adani-led group.

The allegations have been rejected by the group.

Hindenburg released the report on January 24 -- the day on which Adani Enterprises' Rs 20,000-crore follow-on share sale opened for investors.

Adani group stocks have lost about Rs 5.5 lakh crore or about 29 per cent of their combined market cap in the last four trading sessions.

At the end of Tuesday's trading session, three of the 10 Adani group companies ended in the negative territory, with Adani Total Gas closing the day down 10 per cent, Adani Power registering a fall of 4.99 per cent and Adani Wilmar declining by 5 per cent.

Among other Adani group companies, Adani Green Energy settled for the day higher by 3.06 per cent, Adani Transmission (up 3.73 per cent), NDTV (up 1.35 per cent), Adani Ports (up 2.67 per cent), Adani Enterprises (up 3.35 per cent), Ambuja Cements (up 3.50 per cent) and ACC (up 3.39 per cent).

On Monday, Life Insurance Corporation (LIC) issued a statement saying its investments in the group are safe.

"Our total holding in the Adani Group companies under equity and debt on date is Rs 36,474.78 crore. This was Rs 35,917.31 crore as of December 31, 2022. Total purchase value of these equities of the group companies, bought over the past many years, is Rs 30,127 crore and the market value for the same at close of market hours on January 27, 2023 was Rs 56,142 crore," LIC said.

Punjab National Bank (PNB), which has about Rs 7,000 crore exposure in Adani Group entities, said it is keeping a close watch on the developing situation.

LIC stock closed 0.42 per cent lower on Tuesday, while PNB climbed 5.72 per cent. PTI DP ANZ DP ABM ABM

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