Trinamool Congress MP Mahua Moitra lashed out at Gautam Adani, Founder and Chairman of Adani group, after he declared that his company will withdraw the Rs 20,000 crore follow-on public offer (FPO), which was fully subscribed on Tuesday.
On Wednesday, the Adani Group said that looking at the current market volatility, the company has decided to withdraw the FPO to protect the interest of its investing community by returning the proceeds.
In an exchange filing, the company said that the decision was made “given the unprecedented situation and the current market volatility” and the company’s aim to protect the interest of its investing community.
On Tuesday, the Rs 20,000-crore FPO was fully subscribed after the company reported that there was a strong demand from family offices, corporates, and foreign investors, who backed the tycoon after his company was hit by a report by US short-seller Hindenburg Research.
The US short seller in its report alleged the Adani group of companies of financial fraud and misuse of tax havens. The report, which was released last week, has also raised concerns about high debt and the valuations of the seven listed Adani companies.
Taking a swipe at the billionaire, Trinamool MP Moitra tweeted, “Too expensive to buy your own shares at Rs 3,200 when you can buy them from the market at Rs 2,000!”
Too expensive to buy your own shares at ₹3200 when you can buy them from market at ₹2000! ‘Joke is on us’. Keep fooling @SEBI_India & don’t disclose source of money. Rampant market manipulation doesn’t make one “stand by its investors”. pic.twitter.com/3leFV7wn6E
The leader also criticised the voices who were supporting Adani on Twitter with the hashtag “IndiaStandsWithAdani”. She wrote: ‘Joke is on us’. Keep fooling @SEBI_India & don’t disclose source of money. Rampant market manipulation doesn’t make one “stand by its investors”.
She added: “Clearly patriotism of all bhakts who were “standing with Adani” was limited to retweeting hashtags rather than buying Adani stock on the market!”
Clearly patriotism of all bhakts who were “standing with Adani” was limited to retweeting hashtags rather than buying Adani stock on the market!#MonkeysAreAlwaysMonkeys
On Monday, the Lok Sabha member had written a letter to market regulator SEBI asking for a status report on its probe into the allegations leveled against the Adani Group companies by the Hindenburg.
In her letter to SEBI, Moitra said: “Based on the statement by the Adani Group, it seems that SEBI has completed its investigation in this matter and if the investigation was completed the Adani Group won the matter in the court with all charges dismissed or SEBI discharged them. I would like to understand when was the investigation on the matter was completed? What were the findings? What action was taken? What went to the court? When did it go?”
She further wrote: “If the investigation is not complete, why is it taking so long? When will it be completed? Is this in the best interest of the investors, especially when the Group is doing a 20,000 crore FPO and seeking further retail investor’s monies. Why was this approval given to Adani Enterprises without completing this investigation?”
Written to @SEBI_India again today wanting some long awaited answers to my previous queries. pic.twitter.com/uJK6JCewlc
Adani group stocks have been struggling since last week after Hindenburg Research came out of with its report. As per market data, Adani lost around $74.7 billion as per Forbes in five sessions.
On February 1, when FM Nirmala Sitharaman presented the Union Budget, the billionaire lost $15.74 billion, as per Forbes data.
Earlier this week, the ports-to-power conglomerate denied the allegations and said that Hindenburg’s narrative of stock manipulation has “no basis” and stems from an ignorance of Indian law.
On Wednesday, it was reported that SEBI was examining the recent crash in shares of Adani Group and looking into any possible irregularities in a share sale by its flagship company.
A Reuters report said that SEBI is undertaking a full-scale examination of the fall in shares of the Adani group. Besides, it is also looking into any possible price manipulation of Adani group stocks, and related possible irregularities in the Rs 20,000 crore share sale of the flagship firm Adani Enterprises.