Mumbai, 19 September (IANS). Following a clean chit by the Securities and Exchange Board of India (SEBI) on the allegations made by the American short-seler firm Hindanburg Research, the shares of the companies of Adani Group rose by 10 percent on Friday.
By 12 noon, Adani Total Gas Limited’s stock was trading at Rs 653 with a gain of 7.67 percent. Adaani Power Limited’s stock rose by 7.84 percent to 680 rupees. Adani Enterprises Limited’s stock gained 3.97 per cent to Rs 2,497, Adaani Ports and Special Economic Zone Limited’s stock rose by 1.22 per cent to Rs 1,430. Adani Green Energy Limited’s stock rose by 2.96 percent to Rs 1,007.85.
Meanwhile, Global brokerage firm Morgan Stanley advised ‘Overweight’ on Adani Power Limited (APL) and gave a target price of Rs 818, which is 29 percent more than closing of the last trading session.
Brokerage said in a note that Adani Power is a good example of turnout in India’s corporate history, including the solution of most regulatory issues and the acquisition of several values. “
So far this year, Shares of Adani Port and Special Economic Zone Limited and Adani Power have increased by 17.14 percent and 28.12 percent respectively.
In his final order, confirming the widely propagated claims by the short-seler, SEBI concluded that the Adani Group did not violate any rules by flowing money through two private firms, which effectively rejected the claims of hidden party transactions and fraud.
The investigation began after the Hindonburg report in January 2023 followed by the Supreme Court’s directive, the publicly listed Adani Group’s companies -Adani Ports and Special Economic Zone, Adani Power and Adani Enterprises -and two private, non -list institutions -was focused on Lencutors between Non -listing institutions -Mylstone Tradalinks and Rehwar Infrastructure.
Hindenberg alleged that these private firms were used as a mask to hide the transactions that shareholders should have been manifested as “related party transactions” (RPT).
However, SEBI’s detailed investigation has no dominance in these allegations.
SEBI said that in the law of that time, the definition of the concerned party transactions was only for direct transactions between a company and its respective parties. Despite having a commercial relationship between Milestone and Rehwar, they were not legally defined as the concerned party of Adani companies under the applied rules.
-IANS
ABS/
