NEW DELHI: Nirmala Sitharaman, the Union Finance Minister, reacted to the Adani crisis on Saturday in a statement to the media after a post-budget meeting with stakeholders. On Wednesday night, Adani Enterprises Ltd. abruptly decided to cancel its FPO worth 20,000 crore.

She said that the FPO (Follow-on Public Offer) withdrawal by Adani Enterprises had no effect on the macroeconomic foundations of the nation or its standing. After taking into account the share price decline that occurred on February 3, Gautam Adani has also been removed from the list of the top 20 richest persons.

Adani Group's overall market value decreased by 47.44% on February 3 to Rs10,07,999 crore from 19,18,056 crore on January 24, the day the Hindenburg report was made public.

Fund manager Sat Duhra said, if Adani causes a further shift in perception, the wipeout could become more widespread. "A limited number of companies dominate the Indian stock market indices, so any shift in sentiment and trading activity will have a disproportionately strong influence on the indices as more liquid names are sold first."
The Adani Group's market capitalisation has dropped by USD 108 billion since Hindenburg Research accused the corporation of stock manipulation and accounting fraud in a study on January 24.

On Friday, FM Sitharmana said, "Our regulators are typically very, very strict on governance processes. Therefore, one case, no matter how well discussed it may be globally, is not going to be indicative of how well financial markets are governed." She added that investors would continue to have a high level of confidence in India.

The FM also assured that India would carry on to enjoy high investor confidence. India's ministry of corporate affairs has started a preliminary review of Adani Group's financial statements and other regulatory submissions made over the years, as per reports.

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