Adani Group shares rise sharply, 4 firms hit upper circuit

Shares of Adani Group companies rose sharply on Thursday after tumbling for the past few trading sessions. Four listed firms of the conglomerate hit the upper circuit on the National Stock Exchange (NSE) at the end of today’s trading session.

The four firms that hit their upper circuit of 5 per cent are Adani Gas, Adani Transmission, Adani Power and Adani Energy. The conglomerate’s flagship firm, Adani Enterprises, rose 4 per cent on the NSE while Adani Ports and SEZ was up nearly 3 per cent.

Adani Group shares jumped sharply after falling on Monday and Tuesday after it was revealed that some companies of the conglomerate were being investigated by market regulator Sebi for non-compliance.

The development was confirmed by the Minister of State for Finance Pankaj Chaudhary in a written response in the Lok Sabha on Monday. He was replying to questions raised by TMC MP Mahua Moitra.

“Sebi is investigating some Adani Group companies with regard to compliance with SEBI Regulations. Further, the Directorate of Revenue Intelligence (DRI) is investigating certain entities belonging to the Adani Group of Companies under laws administered by it,” the ministry said.

A livemint.com report indicated that Sebi is scrutinising at least three companies controlled by billionaire Gautam Adani for alleged breaches of securities-related laws related to prevention of insider trading and inadequate disclosures. The development was confirmed by two people who spoke to the publication.

However, Adani Group quickly issued a statement after Chaudhary said some companies under the conglomerate were being probed by the DRI and Sebi.

In the statement, Adani Group said, “We have always been transparent with all our regulators and have full faith in them.”

The conglomerate also clarified that it has always been "fully compliant" with applicable SEBI guidelines and has made "full disclosure" to SEBI on specific information requests in the past.

"However, we have not received any communication or information requests recently," read the statement.

As far as the DRI probe is concerned, Adani Group said a show cause notice was issued to Adani Power about five years ago.

"Subsequently, DRI passed an order in favour of Adani Power confirming that there is no over-valuation of equipment. The department has approached the Tribunal and the matter stands sub judice now," Adani Group’s statement added.