Indian market regulator probing Adani share route, says source

Indian market regulator probing Adani share route, says source

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Sources said Sebi is conducting a full-scale probe into the fall in shares as the matter is confidential.

Shares were pulled last week by a report by Hindenburg Research that alleged improper use of offshore tax havens and stock manipulation by the Adani Group. It also raised concerns about the high debt and valuation of seven listed Adani companies.

The group has denied the allegations, stating that the short-seller’s narrative of stock manipulation has “no basis” and stems from ignorance of Indian law. It has always made necessary regulatory disclosures, it added.

The source told Reuters that the Indian market regulator is probing any possible manipulation of Adani Group’s shares, as well as possible irregularities in the $2.5 billion share sale of flagship firm Adani Enterprises ADEL.NS, which ended on Tuesday.

While the book building process of the share offering was only 3% covered on Monday, it was fully subscribed on Tuesday. As foreign institutional investors and corporate funds flooded in, the group managed to secure investment even though Adani Enterprises shares traded below the offer sale price.

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