Adani Gas stock crashes after PNGRB notice, penalty on non-disclosure

The company clarified it had responded to regulators concerned and that there was no question of a penalty.

Adani Gas’ stock price on Friday took a hit in early trade over reports of a Petroleum and Natural Gas Regulatory Board (PNGRB) notice and penalty over non-disclosure of a scheme of arrangement between Adani Gas and Adani Enterprises. The company, however, clarified it had responded to regulators concerned and that there was no question of a penalty.

Adani Gas’ share price later in the day recovered to close at Rs 175.30 per share, 1.42 per cent higher from its previous day close on the BSE.

In November, the PNGRB had sent a show-cause notice to Adani Gas. News reports on Friday also suggested the PNGRB notice looked to cancel licences and impose a hefty penalty of Rs 400 crore.

“AGL shareholding remained unchanged from the time of ninth round bids submission till the issuance of letter of intent (LOI) by PNGRB,” said a person with direct knowledge of these developments, who did not wish to be identified. The person said the scheme results in promoters of Adani Enterprises directly owning Adani Gas instead of indirect ownership through Adani Enterprises. A company response to the notice was sent in December 2019.

An Adani Gas spokesperson said: “It should be noted that we are fully compliant and have transparently represented facts in totality, adhering to norms of compliance and disclosure. There is no question of penalties as same are not applicable and moreover Adani Gas is in full compliance of applicable rules/laws.” 

The spokesperson added, “We have duly responded to PNGRB with all required information to close the matter.”