Despite being surrounded by controversies, the shares of Adani Group saw a rise of up to 8.25 percent in the domestic stock market on Monday. However, the group has termed the allegations against it in America as baseless. Jugeshinder Roby Singh, the group’s chief financial officer, when he reassured investors that none of the 11 public companies under the group’s portfolio were being prosecuted. After this, the confidence of investors in Adani Group seems to be increasing slightly.
Adani Group shares today (till 10 am)
Adani Enterprises 4.12%
Adani Ports and SEZ 4.84%
Adani Green Energy 8.25%
Adani Power 4.34%
Adani Energy Solution 7.09%
Adani Total Gas 5.25%
Adani Wilmar 3.42%
Ambuja Cement 2.80%
Need to respond within 21 days
Singh emphasized that no public company, including subsidiaries, has been included in the recent filing by the US Justice Department. The subpoena requires a response within 21 days, according to a filing made Wednesday in federal court in the Eastern District of New York, a Reuters report shows. The lawsuit seeks monetary penalties and a ban on Adani from serving as an officer of listed companies.
Assurance from CFO
The group’s CFO said Adani Online has a portfolio of 11 public companies, and none of them are subject to prosecution, Financial Express reported. That means they are not a defendant in any legal proceedings in a New York court, according to a recent DOJ filing. He further clarified that the legal action mentioned in the filing was specific to Adani Green, one of the group companies. He said the dispute revolves around a contract involving Adani Green, which accounts for about 10% of its total business.
