According to LIC Chairman M. R. Kumar, top management of the Adani Group will soon be contacted in order to discuss the crisis of the company currently experiencing.
After US-based short-seller Hindenburg Research made a long list of accusations against the Gautam Adani-led group, including that its organization manages and manipulate stock prices, run offshore shell companies for round-tripping, and lack in corporate governance practices, the opposition parties and investors criticized LIC’s investment in the stock of Adani group firms.
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“Even though our finance team has already asked the Adanis for clarifications, our top management hasn’t been able to get in touch with them because we’ve been so busy getting the results ready. We’ll call them soon to arrange a meeting so we can clarify. Understanding the state of the market and the business is important to us “at the earnings presentation on Thursday, the chairman informed reporters.
In the near future, Kumar said, “We’ll call them in to see how they’re handling the entire problem.” However, Kumar steadfastly declined to provide a schedule for the meeting between LIC and Adani group representatives.
The value of the group firms’ equities has dropped by more than USD 100 billion, or around 60%, from their January 24 value since the Hindenberg study was published on January 24, three days before the start of the company’s flagship Adani Enterprises’ 20,000 crore follow-on public offer (FPO).
