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Adani Group shares fell on April 3 after Reuters published an article on the Securities and Exchange Board of India’s (Sebi) investigation into possible violations of “related party” transactions.
The probe concerns Adani Group’s dealings with at least three overseas entities linked to founder Gautam Adani’s brother, Vinod Adani.
The three offshore entities reportedly conducted multiple investment deals with the unlisted subsidiary of the port-to-power group over more than 13 years.
The report said Vinod Adani is associated with the entities as a beneficial owner or director. Markets watchdog Sebi is investigating whether the failure to disclose the links constituted a breach of “related party transactions”.
Adani Enterprises Ltd fell 2.5%, Adani Transmission Ltd and Adani Green Energy Ltd fell 5% each, Adani Total Gas Ltd fell 0.7%, Adani Power Ltd fell 2.2%, Adani Ports and SEZ fell 1.2%, Adani Wilmar fell 3.5%, NDTV Ltd fell 3.7%.
Proxy advisory firm Institutional Investor Advisory Services (IiAS) has urged Adani Total Gas (ATGL) shareholders to reject a special resolution to amend the company’s articles of association (AoA). IiAS argued that the disclosures supporting the resolution were insufficiently transparent.
The proposed amendments to the AoA would incorporate specific provisions in the shareholders’ agreement allowing changes to board nomination rights based on the Total Energies Holdings (THS) group and the current promoters group’s respective shares in the company. The deadline to vote on that resolution, as well as two others, is April 6.
Shares of ACC rose 1.3%, while Ambuja Cements Ltd gained 1.6% after Financial Express reported that Adani Group had no plans to raise external funds to double the manufacturing capacity of its cement company Ambuja Cements and ACC to 140 million tonnes by FY28. The group said it had sufficient internal accruals to achieve this.
In addition, Adani Group has also drawn up a plan to reduce costs to meet its goal of becoming the most profitable cement manufacturer in the country.
