SEBI Investigating Adani's Links To Investors In Called Off Rs 20,000 Crore FPO: Report

SEBI is investigating Adani's relations with two Mauritius-based funds - Great International Tusker Fund and Ayushmat which participated as anchor investors ahead of the FPO

Outlook Business Team

Updated on: 10 February 2023 4:15 pm

Market regulator Securities and Exchange Board of India (SEBI) is investigating Adani group's links to investors in Rs 20,000 crore follow-on public offer which was cancelled last month after getting fully booked on the last day of the issue, news agency Reuters reported citing two people aware of the matter.

SEBI is investigating Adani's relations with two Mauritius-based funds - Great International Tusker Fund and Ayushmat which participated as anchor investors ahead of the FPO, according to the sources quoted by Reuters.

As per the regulations any entity related company's promoter or promoter group is not allowed to apply under the quota of anchor investors and the regulator is investigating any connection between the anchor investors and the promoter group.

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The investigation in the matter comes after Adani Group has lost $110 billion in market capitalisation after a report by US-based short seller Hindenburg Research levelled allegations of stock price manipulation and improper use of tax havens.

Meanwhile, the opposition has been targetting the government over close relations between billionaire businessman Gautam Adani and Prime Minister Narendra Modi.

In a separate development, Life Insurance Corporation of India (LIC) Thursday said that its investments in Adani Group companies are still in green, implying that the insurer is sitting on unrealised gains from its Adani investments.

LIC's investments in the crisis-ridden Adani Group has been under tremendous criticism after its investments in Adani-related entities lost almost 60 per cent of its value since January 25. The insurer clarified that only 0.97 per cent of its total book value is invested in Adani Group companies.

LIC Chairman M R Kumar said that LIC will meet Adani Group's top management soon.

However, LIC stated that it cannot give the market value of its investment in Adani as of now. The state-backed insurer said that the market value of its Adani investments is higher than the book value of its stake.