Mumbai: Adani Enterprises on Wednesday announced the withdrawal of its Rs 20,000 crore follow-on public offering (FPO) and return of investors’ money. However, the FPO of the company was fully subscribed on Tuesday. Adani Enterprises is understood to have taken this step following a report by US-based shortselling company Hindenburg.
Taking a jibe at Adani Enterprises, the Congress on Thursday said talking about Adani being morally right is tantamount to preaching the virtues of humility, simplicity and large-heartedness by his ‘principal mentor’. Party general secretary Jairam Ramesh also said that it is ‘entire political science’.
Gautam Adani, Chairman, Adani Enterprises, said, “Yesterday’s decision to withdraw the FPO after being fully subscribed may have surprised many, but considering the volatility in the market yesterday, the board feels it would not be morally right to continue FPO.”
After last week’s report of ‘Hindenburg Research’, the shares of Adani group companies are continuously declining. This trend of decline continued on Wednesday as well. The collective market capitalization of the group companies has declined by Rs 7 lakh crore in the last five trading sessions.
Opposition uproar in Parliament on Adani case, demand for JPC
In the midst of the Adani episode, the attack of the opposition has started in the Parliament as well. Leader of the Opposition Mallikarjun Kharge has said that the matter should be investigated by a Joint Parliamentary Committee or under the supervision of the CJI of the Supreme Court. On the other hand, Congress MP Manish Tewari has said that we will demand that a Joint Parliamentary Committee (JPC) should be constituted to investigate the alleged irregularities. On Hindenburg Report against Adani Group, Congress MP Manish Tewari said, “The question is not only about one promoter, but it questions the entire regulatory system.”
