Gautam Adani’s business empire is under further strain as Adani Power revealed on Monday that it received a show-cause notice from the Securities and Exchange Board of India (SEBI) in the second quarter of the current financial year. This news led to a decline in Adani Power shares, which dropped by as much as Rs 21, or 3.5%, to Rs 578.1 during trading on the Bombay Stock Exchange (BSE).
Later, Adani Power shares were down 2% at Rs 587. Adani Enterprises and Adani Ports also experienced similar declines, with each falling by 2%. Other group stocks, including Adani Green Energy and Adani Total Gas, saw minor drops of about half a percentage point.
The show-cause notice relates to alleged wrongful categorisation of shareholding, which may violate SEBI’s public shareholding rules. Adani Power stated it is responding to SEBI and providing necessary information and clarifications. The company asserts that all its transactions and disclosures are compliant with the law and that there are no material effects on its financial results.
This comes after US-based Hindenburg Research accused the Adani group of financial irregularities, claims the conglomerate has consistently denied.
The notice to Adani Power follows a similar notification received by Adani Energy Solutions, highlighting ongoing regulatory challenges faced by the diversified Adani group.
