Adani Gas crashes 14% on report of gas regulator's notice on non-disclosure

Shares of Adani Gas slipped 14 per cent to Rs 148 on the BSE in Friday's session on reports that Petroleum and Natural Gas Regulatory Board of India (PNGRB) has sent a notice to the company for failing to disclose crucial information regarding a scheme of arrangement with Adani Enterprises.

According to the report by TV channel CNBC Awaaz, Adani Gas has bid for gas projects using networth calculations of Adani Enterprises and that the company’s shareholding changes and restructuring violated city gas distribution regulations, the report said.

The company later told the TV channel it had responded to PNGRB "with all required information to close the matter".

"We are fully compliant and have transparently represented facts... All concerned authorities were intimated about reorganisation of company," the channel quoted representatives of Adani Gas as saying.

"All concerned authorities were intimated about the proceedings pertaining reorganization of AGL through media / newspapers / disclosures / public listing / bid submissions. We have duly responded to PNGRB with all required informations to close the matter. Our project work at all GAs are going on in full swing and with the facilitation and support of PNGRB and all authorities we are committed to deliver CNG and piped gas to millions of our consumers on fast track basis. There is no question of penalties as same are not applicable and moreover Adani Gas is in full compliance of applicable rules/laws," the company clarified in a release.

At 10 AM, the stock had pared  more than half of its losses and was trading 6 per cent lower at Rs 163 as compared to 0.2 per cent gain in the benchmark S&P BSE Sensex. Around 6 million shares have changed hands on the NSE and BSE so far. 

Other Adani Group stocks also declined in intra-day trade today. Adani Enterprises (down 5 per cent to Rs 219), Adani Green  Energy (down 5 per cent to Rs 183), Adani Power (down 1 per cent to Rs 62.60), Adani Transmission (down 1.72 per cent to Rs 327), Adani Ports (down 1.4 per cent at Rs 380.50) on the BSE.