India's market regulator is investigating possible violation of 'related party' transaction rules in the Adani Group's dealings with at least three offshore entities that have links to the brother of the conglomerate's founder, Reuters reported.
The three offshore entities in question have reportedly been engaged in multiple investment dealings with unlisted subsidiaries of the ports-to-power conglomerate over 13 years.
Vinod Adani is either affiliated with these entities as a beneficial owner or director, the report claimed. Markets regulator Sebi is investigating whether the failure to disclose these connections constitutes a breach of regulations governing "related-party transactions".
Eight out of the 10 Adani Group stocks were trading in the red. Three of them - Adani Green Energy, Adani Wilmar and NDTV - were trading over 3% lower while Adani Transmission was locked in the 5% lower circuit limit.
Shares of the conglomerate's flagship entity Adani Enterprises were trading 2.6% lower while those of the group's cash cow Adani Ports were 1.5% lower around 11.40 am.
The selloff in Adani stocks resumed last week after a report published by The Ken raised questions on whether the Ahmedabad-based conglomerate has actually repaid debt totaling $2.15 billion."Despite the Adani Group's claim of “complete” repayment of $2.15 billion in share-backed debt, regulatory filings show that banks have not released a significant portion of the promoters' shares held as collateral, indicating that the debt has not been fully paid off," the report said.
It claimed that the group has only reduced the loan amount through partial repayment to avoid pledging more shares and any action against it by the lenders.
After Adani’s prepayment announcement, banks have only released the pledged shares of Adani Ports & SEZ, according to the report.
"The pledged shares of Adani Green and Adani Transmission have not been released by banks even a month after the loan repayment. This is highly unusual as pledged shares are usually released immediately after the borrower settles their debts," it said.
However, last week, Adani Group via an exchange filing urged the stock exchanges “to take appropriate actions against such agencies whose actions are prejudicial to the interests of the investors at large”.
The Adani Group, had on March 28 clarified and “refuted the false narrative on repayment of loans against shares published by The Ken,” it said.
According to another report in ET last week, the Adani Group is seeking to renegotiate the terms of outstanding loans worth $4 billion taken in August last year for the acquisition of its cement assets - ACC and Ambuja Cements - from Switzerland-based Holcim group.
Following the release of a damaging report by Hindenburg Research in late January, Adani stocks went into a tailspin and ended up losing around $100 billion in market capitalisation in the next few weeks. However, after the embattled billionaire conducted roadshows to convince investors, prepaid debts and sold stake to US-based GQG Partners in a Rs 15,000 crore deal, the sell-off was contained.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Adani stocks lose up to 5%; 8 counters in red. Here's why - Economic Times
Read More
No comments:
Post a Comment