Adani group shares trade mixed as Hindenburg issue resurfaces; AEL down 1%

Sebi slapped 'show cause' notice to Hindenburg; Adani Total Gas, Adani Energy Solutions, New Delhi Television and Adani Wilmar were up in the range of 1 per cent to 2 per cent.

Shares of Adani Group companies were trading on a mixed note on the bourses after the US-based short seller Hindenburg Research said that it received a "show cause" notice from the Securities and Exchange Board of India (Sebi) over the Adani issue.

Hindenburg said it received a notice on June 27 "outlining suspected violations of Indian regulations" and alleged that the regulator came to Adani Group's aid after the January 2023 report was released. CLICK HERE FOR FULL REPORT

Of the 10 listed Adani group companies, the market price of Adani Total Gas, Adani Energy Solutions, New Delhi Television (NDTV) and Adani Wilmar were up in the range of 1 per cent to 2 per cent. Adani Power, Adani Ports and Special Economic Zone, Adani Green Energy and ACC traded flat.

Adani Enterprises (AEL), the groups’ flagship company, and Ambuja Cements were down up to 1 per cent. In comparison, the BSE Sensex was traded flat at 79,478 at 09:34 am.

The Hindenburg report was published on January 24, 2023 by a short seller addressed to the “Adani Group”. The short seller report contained certain allegations and questions pertaining to some of the Adani portfolio companies including AEL. The 88 allegations targeting Adani Group companies were around historic events. The response to these allegations was submitted by company to the Indian stock exchanges on January 29, 2023, AEL said in its FY24 annual report.

On January 3, 2024, the Hon'ble Supreme Court disposed of all matters in various petitions including those seeking separate independent investigations relating to the allegations in the short seller report.

Further, the Hon'ble Supreme Court directed SEBI to complete the pending two investigations, preferably within three months, and take its investigations (including 22 already completed) to their logical conclusion in accordance with the law.

During the quarter that ended March 31, 2024, AEL received two show cause notices (SCNs) from SEBI alleging non-compliance of provisions of the Listing Agreement and SEBI LODR Regulations pertaining to alleged related party transactions with third parties and validity of peer review certificates of statutory auditors with respect to earlier years.

The management of AEL believes that there is no material consequential effect of these SCNs on relevant financial statements and no material non-compliance with applicable laws and regulations, the company said in FY24 annual report.