Adani Group Row: There was a stir throughout the day on Friday (February 3) regarding the Adani Group. When there was a lot of uproar in both the Houses of Parliament regarding the demand for discussion on the allegations of fraud against the Adani Group, a statement was also given by the government. Meanwhile, the Reserve Bank (RBI) said that the banking sector should remain strong and stable. Know the big things related to the matter.
1. The Congress and 15 other opposition parties on Friday asserted that they will continue to raise the demand for discussion and inquiry in both the Houses of Parliament on the allegations made by ‘Hindenburg Research’ against the Adani Group. Leaders of Congress, DMK, Aam Aadmi Party, Bharat Rashtra Samithi, Samajwadi Party, Nationalist Congress Party, Janata Dal (United) and many other parties attended the meeting of 16 parties in the chamber of Leader of Opposition in Rajya Sabha Mallikarjun Kharge in Parliament House.
2. As soon as the proceedings of Rajya Sabha and Lok Sabha started, the opposition started ruckus. Opposition members also raised slogans, demanding a discussion on the allegation of fraud on the Adani Group and an inquiry by the Joint Parliamentary Committee. The speaker appealed to the members to stop the demonstration, but the opposition continued to protest and raise slogans. Due to the uproar, the proceedings of both the Houses were adjourned till 6 February.
3. Congress MP Shashi Tharoor said that we want to discuss the falling stock market, public money is in LIC and other government institutions. At the same time, Union Minister Prahlad Joshi said after the uproar in the House that the government has nothing to do with it (Adani stock crash). The opposition does not have any other issue.
4. Amid concerns over bank loans to the Adani group, the Reserve Bank of India (RBI) said India’s banking sector is strong and stable. The central bank also said that it is constantly monitoring the lenders. However, the RBI did not name the Adani group. The RBI said that as per the current assessment “the banking sector remains resilient and stable”. Various parameters related to capital adequacy, asset quality, liquidity, provisioning spread and profitability are in good shape.
5. American financial research firm Hindenburg Research has accused the group led by industrialist Gautam Adani of engaging in “blatant stock manipulation and accounting fraud”. After this allegation of the company, the shares of the group companies are continuously falling. The Adani Group has termed the allegations as baseless, but in about a week, the value of the listed companies of the Adani Group has decreased by more than $100 billion.
6. Moody’s Investors Service on Friday warned that a sharp fall in shares of Adani group companies could impact the group’s ability to raise capital. Moody’s said in a statement that in view of the large and sharp drop in the share price of Adani group companies after the release of the short seller company report, our immediate focus is on the overall cash position of the rated group companies, including their cash positions. To assess the financial strength or fighting ability. Meanwhile, US rating agency S&P Global Ratings has upgraded the outlook of both the companies from stable to negative while retaining the credit rating on Adani Ports and Adani Electricity.
7. Fitch Ratings, on the other hand, said that there will be no immediate impact on the ratings of Adani group companies and their securities. The rating agency said that no major change is expected in the cash flow estimates of the group. Fitch further said that our monitoring is ongoing and we are closely monitoring any major changes related to companies’ access to finance or the cost of long-term debt.
8. Shares of four group companies, including Adani Enterprises and Adani Ports, closed sharply on Friday. Earlier, there was a sharp decline in the shares of Adani group companies for the last six days. Shares of Adani Enterprises closed at Rs 1,584.20 per share, up 1.25 per cent on the BSE. While making a comeback, the stock of Adani Ports rose 7.98 per cent to Rs 498.85 per share. Ambuja Cement gained 6.03 percent and ACC gained 4.39 percent. However, Adani Transmission declined by 10 per cent, Adani Green Energy by 10 per cent, Adani Power by five per cent, Adani Total Gas by five per cent, Adani Wilmar by 4.99 per cent and NDTV by 4.98 per cent.
9. The country’s largest bank, State Bank of India (SBI), said it has loans of about Rs 27,000 crore to Adani group companies, which is only 0.88 per cent of total loans disbursed. SBI Chairman Dinesh Khara said that the bank has not given any loan to this group in lieu of shares. Along with this, he said that the record of repaying the outstanding loan of this group has been very good.
10. Two global rating firms have maintained the ratings of the group companies and its French partner has justified its investment in the group companies. French energy giant TotalEnergies, which holds stake in two Adani Group companies, said it has not re-evaluated its stake amid a sharp fall in the group’s shares. TotalEnergies said that it had made its investments in Adani group companies in full compliance with Indian laws and based on its internal operating procedures.
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