It all began from 12th June 2021 when journalist Suchita Dalal tweeted hinting about ‘the rigging prices of one group’ indirectly talking about the Adani group of companies. A news circulated thereafter in economic times proclaiming that NSDL freezed three FPI accounts which are the top stakeholders with Adani group and having stake worth 43,500 crores because of insufficient disclosure of information regarding beneficial ownership as per PMLA act, 2002. Subsequenty, after the shares of Adani grouped touched lower circuits, Adani group clarified that the news is “blatantly erroneous” and was just circulated in order to create insecurities among the investors and for hampering the image of the group as the three foreign accounts were still ‘active’. And as all of this news was circulating amongst the traders and investors NSDL came into picture and issued a circular stating that the three FPI accounts has not been freezed but “suspended for debit order” as of now as per SEBI orders.

But now the question arises that why the Adani group collapsed?

Since last one or two years Adani group made a huge wealth through stocks and elated its investors by yielding higher returns. Everything was going smooth until Mrs. Dalal came into picture. Keeping aside the good side of the group and moving to its collision. In 2019, under PMLA act these FPI’s were instructed to divulge their ownership status but they didn’t. And now the investors and traders are being more vigilant thereby losing confidence and trust on the company as its crystal clear that the prices are driven by the operators and are highly volatile.

Now heading towards which are these entities and why they are being questioned?

Six Mauritius based entities have more than 95% of their net worth looming only from Adani group and it shall not be new for us to note that Mauritius is basically known for its “felonious corporates”. And the irony of the same is that three out of these six corporates have same addreses and doesn’t own any website. The six entities are Apms investment funds, Albula investment funds, Elara funds, LTS investment funds, Vespera funds, and Cresta. Out of these the three FPI mentioned above are Cresta, Albula and Apms. And the cynicism is that when the group’s stocks surged upper circuits day by day these companies didn’t sell their stakes why? Well, the answers can only be given by these companies which has not yet came into picture as of now.

Why the group is not recovering from the collision till date and what are the facts as per different sources and important to know as an investor?

Adani enterprise basically acts as an incubator i.e, basically fostering other companies, listing and demerging them. And another cynicism is that the group’s free float is very less. The composition of its holding is Promoters hold around 66.63%, FPI – 20.51%, Foreign promoters – 9%, and the most important general public holds just 2.75% isn’t it strange and the cherry on the cake is that the company is still heavily debt funded. The group’s stocks are still not taking up arms as the reason might be that all these investors have became more cautious and concerned regarding the long term growth prospects of the company and the investments made by them for the same.

CONCLUSION

As far as Mrs. Dalal and other’s opinions are concerned Adani enterprise is just an overpriced structure and the same is proven by the news reports and financials of the company and there is no doubt in saying that the Adani group’s  retail investors have no saying in the matters related to the company as their holdings are in nutshell i.e, just 2%.

*****

Disclaimer: The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

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Qualification: Student - CA/CS/CMA
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Location: jaipur, Rajasthan, India
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