Adani Power to Adani Enterprises: Adani shares extend sell off for second straight session

Adani group shares continue to make news on second straight session as company shares remained under sell off pressure for second straight session. Adani Power shares opened lower and went on to make intraday low of ₹312.25 apiece on NSE, logging over one per cent dip against its Thursday price. Similarly, Adani Enterprises shares are also swinging in gain and loss while Adani Green Energy, Adani Ports, Adani Total Gas, Adani Transmission, Adani Wilmar, etc. too slipped into the red zone. However, after trading in red zone, some Adani group shares started recovering from its intraday lows.

Adani news that you should know

Adani shares have been under the sell off stress since Thursday after the non-profit media organisation Organised Crime and Corruption Reporting Project (OCCRP) raised concern over the Mauritius-based offshore funding. In a fresh set of allegations OCCRP labelled charges against Adani group for using ‘opaque investments’ through Mauritius. The non-profit media organisation has reported that they have found two cases in which investors bought and sold Adani stock through such offshore structures.

The OCCRP report said, "Exclusive documents obtained by OCCRP and shared with The Guardian and Financial Times — including files from multiple tax havens, bank records, and internal Adani Group emails — shed light on that very matter," adding, "These documents, which have been corroborated by people with direct knowledge of the Adani Group’s business and public records from multiple countries, show how hundreds of millions of dollars were invested in publicly traded Adani stock through opaque investment funds based in the island nation of Mauritius."

See OCCRP tweet below:

Alleging Adani family involvement in this offshore funding, OCCRP report added, "The two men, Nasser Ali Shaban Ahli and Chang Chung-Ling, have longtime business ties to the family and have also served as directors and shareholders in Adani Group companies and companies associated with one of the family’s senior members, Vinod Adani."

Adani group denies allegations

However, Adani group denied these allegations citing 'yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report.'

Also read: Adani stocks, bonds fall after report; volatility may continue

“These claims are based on closed cases from a decade ago when the Directorate of Revenue Intelligence (DRI) probed allegations of over invoicing, transfer of funds abroad, related party transactions and investments through FPIs. An independent adjudicating authority and an appellate tribunal had both confirmed that there was no over-valuation and that the transactions were in accordance with applicable law. The matter attained finality in March 2023 when the Hon'ble Supreme Court of India ruled in our favour. Clearly, since there was no over-valuation, there is no relevance or foundation for these allegations on transfer of funds," Adani group said.

Also read: LIC loses more than ₹1,400 crore in six Adani stocks in just a day; details here

"These attempts are aimed at, inter alia, generating profits by driving down our stock prices and these short sellers are under investigation by various authorities. As the Hon’ble Supreme Court and SEBI are overseeing these matters, it is vital to respect the ongoing regulatory process," Adani group said in its exchange communication.

Hindenburg 2.0?

Around eight months ago, US-based short seller Hindenburg Research had raised concern over the debt positioning go Adani group companies that led to huge sell off in Adani group stocks for near one month. After that debt positioning, OCCRP is the second big attack on Adani group companies on its funding.

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