MUMBAI: Leaders in their respective fields, Uday Kotak and Anand Mahindra, have emphasized the Indian economy's resilience in response to global commentary regarding the impact of the collapse in Adani Group shares.
Veteran banker Kotak acknowledged the difficulties and vulnerability posed by large Indian corporations' increased reliance on global sources for debt and equity financing. However, he stated that the recent events did not pose a systemic threat to the Indian financial system. It's time to boost Indian underwriting and capacity building, Kotak tweeted.
In a tweet on Saturday, industrialist Anand Mahindra made reference to global media speculation regarding whether the current difficulties in the business sector will impede India's ambitions to be a global economic power. I have lived through earthquakes, droughts, recessions, wars, and terrorist attacks. I will only say this: Never, ever place a wager on India.
After the Hindenburg Research report, which alleged irregularities in the group, was released, the value of Adani Group companies dropped by nearly $100 billion. Adani Enterprises also returned funds to international investors and canceled its Rs 20,000 million follow-on public offering.
Government officials and regulators have denied rumors that the loss would have a larger impact on the Indian financial market.