Have made full disclosures in past, not facing Sebi probe on FPIs: APSEZ

Says absolutely no connection with FPIs based in Mauritius; has applied to operate Myanmar port

India's largest port and transport utility firm, Adani Ports & Special Economic Zone (APSEZ) has said that it is not facing any probe from the market regulator, the Securities and Exchange Board of India (Sebi) and has made full disclosures to specific information requests from them in the past.

Soon after announcing its results for the June quarter, APSEZ officials informed investors that the group has nothing to do with so-called foreign portfolio investments (FPIs) entities and the group founders have clarified repeatedly that they have no connection with these FPIs based in Mauritius. In order to protect the interest of the minority shareholders, APSEZ has already approached the registrar and the NSDL and it was confirmed on the same day that equity accounts of these FPIs were not frozen. Subsequently on July 28th, NSDL rectified the same, APSEZ officials said.

APSEZ shares are trading at Rs 710 a share as on Friday on the bources. The stock has gained after it announced that its consolidated revenue grew by 99 per cent in the June quarter while its earnings before interest, tax, depreciation and amortisation (EBITDA) hit a high of 82  per cent. At the same time,  APSEZ’s market share in the all-India cargo rose to 29 per cent and it recorded its highest ever quarterly volume growth of 83 per cent.

On the reports of a Directorate of Revenue Intelligence investigation, officials said this was not applicable to APSEZ though one of the group companies, Adani Power was issued a show cause notice five years back. Later the competent authorities passed an order in favour of Adani Power which was contested by them and the matter is now sub judice.

On the Myanmar project, APSEZ said there has been no violation of any sanction guidelines issued by Office of Foreign Assets Control (OFAC) and has now applied to OFAC for a general license to operate the port. The port is expected to create stable jobs, promote trade, and facilitate arrival of goods such as food, medicine and clothing for the Burmese people. Apart from following the anti-bribery and anti-corruption guidelines, the company also stated it would utilize the compliance procedures aimed at combating all possible corruption in the port and it would abide by the guidelines and compliance program of OFAC while issuing a general license.