They did a wonderful thing by withdrawing FPO: Gautam Adani's former lawyer Harish Salve 

Adani Group Hindenburg Report: Ports-to-energy conglomerate Adani Group Chairman Gautam Adani’s former lawyer and ex-Solicitor General of India Harish Salve said that the beleaguered tycoon’s decision to withdraw the Rs 20,000 crore follow-on public offer, which was fully subscribed, and return the investors’ proceeds was wonderful.

He said that retail investors should not suffer and that the Adani Group shares will continue to tank for a few weeks. Salve’s comments come at a time when Adani Group is battling a rout in its stocks due to the scathing report by the US-based short-selling firm Hindenburg Research.

Salve, who is also a practicing Supreme Court advocate, told India Today’s Rajdeep Sardesai: “He has done a wonderful thing by withdrawing the FPO because the retail investor should not suffer. For the next few weeks, the shares will tank. They will try and control it, but the shares will tank. These allegations will be investigated and thrown out in some time and confidence will be rebuilt. But in the meantime, Hindenburg gets away with it.”

He stated: “Till the time the market continues in this volatile condition, there is bound to be an erosion of confidence. It takes a lifetime to build a reputation and trust, and a moment to destroy it.”

On Thursday, Gautam Adani announced that the company board felt it was not morally right to go ahead with the Rs 20,000 crore FPO issue due to market volatility on Budget day. He added that the interest of investors is paramount and everything else follows thereafter.

He said, “After a fully subscribed FPO, the decision of its withdrawal would have surprised many. But considering the volatility of the market seen yesterday, the board strongly felt that it would not be morally correct to proceed with the FPO.”

During the course of this interview, Salve also took a jibe at the US-based short-selling firm and said some people like making money by leveling such allegations. He further noted that Gautam Adani’s grandchildren will fight the case if the Group sues Hindenburg for damages.

Salve said: “Where India lacks is that in India, we don’t have the legal framework to take on a Hindenburg. If we sue them for damages, Gautam Adani’s grandchildren will be fighting the case.”

Meanwhile, nine companies of the Adani Group have lost $107 billion in market cap after six straight sessions of a blood bath at Dalal Street or nearly 45 per cent.

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