CEA Nageswaran declines to comment on Adani controversy

On Tuesday, CEA V Anantha Nageswaran declined to speak about the effect of the Adani Group stock decline after a damaging report from a US-based short seller.

“Corporate sector as a whole has deleveraged and balance sheets 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.

Also Read: Why investors needn’t panic over Adani group firms’ share fall

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.

Also Read: LIC says it has exposure of Rs 36,474.78 crore to Adani Group

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.

Also Read: Hindenburg disclosure on Adani Group: Clean-up notice to all Indian companies

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.

(With agency inputs)