New Delhi: The Reserve Bank of India (RBI) has sought details from banks about the exposure to Adani group companies amid the sustained fall in the shares of group companies and the withdrawal of the follow-on public offer of Rs 20,000 crore.
The information being sought by the central bank includes details of collateral being used to back loans, and indirect exposure that banks may have.
Earlier, the Group on Wednesday said that given the unprecedented market volatility and circumstances, it is recalling its FPO. This comes shortly after the Hindenburg reports were published. The Group said that it would return the money of the investors soon.
The American short-seller accused the Adani Group of using tax havens and flagged debt concerns in a report.
“The Board of Directors of the Company at its meeting held today i.e. February 1, 2023 has decided, in the interest of its subscribers, not to proceed with the further public offer (FPO) of equity shares aggregating up to Rs 20,000 crore of face value Rs 1 each on partly paid-up basis, which was fully subscribed,” the company said in a statement to the National Stock Exchange.
“The Board takes this opportunity to thank all the investors for your support and commitment to our FPO. The subscription for the FPO closed successfully yesterday. Despite the volatility in the stock over the last week, your faith and belief in the Company, its business and its management has been extremely reassuring and humbling. Thank you,” the statement further read.
Adani Group stocks have been under stress since Hindenburg in its research report titled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History’, questioned the accounting and corporate governance practices of Adani Group, and also raised the issue of heavy debt last week.
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