In a big problem for businessman Gautam Adani, the company that generates electricity in this organization Adani Power said on Monday that it received a notice from the capital market regulator Securities and Exchange Board of India (SEBI) in the second half of the financial year. . Adani Power shares, along with many other stocks in the group, faced selling pressure against the backdrop of the news. During the first half of the session, Adani Power stock fell by Rs 21, or 3.5 percent, to Rs 578.1 apiece on the BSE.
At 11:50 am, while shares of Adani Power were down 2.0 percent at Rs 587 each, Adani Enterprises and Adani Ports were down 2.0 percent each. Other group stocks such as Adani Green Energy and Adani Total Gas fell by around half a percentage point each.
In the second half of the current financial year, SEBI completed one of its pending investigations and issued a show cause notice to Adani Power, “alleging improper classification of shares of certain companies” related to the regulator’s public shareholding practices and the consequences thereof, power. said the company in a regulatory filing and its financial results for the period.
Adani Power said it is “in the process of responding to regulatory authorities providing information, responses, documents and/or explanations, as applicable”.
The Adani group company also said its management believes that, based on legal considerations, all of the company’s transactions with third parties and all promoter disclosures or public participation are in compliance with applicable laws and regulations at the relevant time. “There is no non-compliance with the applicable laws and regulations as alleged in the SCNs (show cause notices) and there are no consequential consequences in the current period and the relevant year’s financial statements/financial results,” Adani Power said.
The notices sent to Adani companies were in line with a series of serious allegations leveled against the company by American research firm Hindenburg Research, which has repeatedly denied the allegations.
Adani Power said its management has concluded that there are no concrete results of the allegations mentioned in the short seller’s report and some allegations do not need to be addressed in this regard. “There are no changes in the above conclusions from the six months ended September 30, 2024,” it noted.
The development comes days after Adani Energy Solutions, another group company, confirmed that it had received a notice from the regulator regarding similar issues. Adani Energy Solutions said the notice was related to the regulator’s limited public shareholding practices.
Both Adani Power and Adani Energy Solutions are part of a conglomerate that is often considered highly diversified by many analysts.
Additionally, SEBI’s notice comes at a time when SEBI Chairman Madhabi Puri Buch himself has denied a series of serious charges leveled against him by Hindenburg this year.
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