Adani Enterprises drops on reports of CCI penalty on subsidiary

Adani Enterprises lost 1.21% to Rs 491.60 at 10:38 IST on BSE on reports that the Competition Commission of India has imposed a penalty of Rs 25.67 crore on Adani Gas for violating competition norms by abusing its dominant market position.

Meanwhile, the S&P BSE Sensex was down 36.63 points or 0.14% at 26,063.45.

On BSE, so far 90,000 shares were traded in the counter as against average daily volume of 10.29 lakh shares in the past one quarter.

The stock hit a high of Rs 498.70 and a low of Rs 488.35 so far during the day. The stock hit a 52-week low of Rs 126.05 on 4 September 2013. The stock hit a 52-week high of Rs 585 on 16 May 2014.

The stock had underperformed the market over the past one month till 7 July 2014, sliding 1.43% compared with Sensex's 2.77% rise. The scrip had, however, outperformed the market in past one quarter, jumping 31.66% as against Sensex's 16.81% rise.

The large-cap company has equity capital of Rs 109.98 crore. Face value per share is Re 1.

As per reports, the fair trade watchdog Competition Commission of India (CCI) has imposed a penalty of Rs 25.67 crore on Adani Gas for violating competition norms by abusing its dominant market position. Adani Gas is a wholly owned subsidiary of Adani Enterprises. The CCI ruling has come on a case related to supply and distribution of natural gas by Adani Gas in Faridabad, reports added.

The case was taken up by CCI following information filed by Faridabad Industries Association and the final order was passed on July 3, as per reports. The CCI found that Adani Gas to be in "dominant position in the relevant market of supply and distribution of natural gas to industrial consumers in the district Faridabad, Haryana", according to reports. The watchdog has held that Adani Gas violated competition norms by imposing "unfair conditions upon the buyers under Gas GSA", as per reports.

Adani Enterprises' consolidated net profit jumped 501.1% to Rs 2847.82 crore on 40.7% growth in net sales to Rs 16142.34 crore in Q4 March 2014 over Q4 March 2013.

Adani Enterprises is the flagship company of the Adani Group. The company is the largest private sector coal importer in India.

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