As per regulation 155 of SEBI ICDR Regulations company cannot bring the FPO if investigation by sebi is ongoing or show cause notice has been served and pending
Backstory,In July-21 Govt in parliament responded to questions raised by @MahuaMoitra and stated that SEBI is investigating Adani Group
Same day, Adani group clarified that there is no investigation ongoing by Sebi, though theybmentioned that Sebi has sought some "specific information" (more details on this later)
A month after parliamentary response, Sebi kept Adani Wilmar IPO "in abeyance" without giving further details.
Most probably due to Sebi ongoing investigation which Govt mentioned
Adani Group in RHP documents (Adani Wilmar IPO and Adani Enterprises IPO) didn't disclose about any such investigation which govt mentioned
But stated that Sebi sought some information in Nov-20 and it responded but no show cause notice or further communication issued
Also interesting to note is how the description of "specific information" sought by Investigation dept of Sebi has changed in both (Adani Wilmar vs Adani Ent) has changed
Pic 1 : Adani Ent
Pic 2 : Adani Wimar (highlighted in red the missing information in FPO doc)
To give perspective on timing,
Sebi sought information from Adani Group in Nov-20 (before @suchetadalal 's tweet on Adani Group) while Govt response came after her tweet
Fast forward to 2023, @HindenburgRes says SEBI investigation is ongoing and not concluded as of Sept-22
@Reuters@jaysh88 also mentioned that Sebi investigation is ongoing
Summarizing there are evidences that investigation is ongoing but Adani group has denied it.
If investigation is ongoing Adani Enterprises is no eligible for Fast Track FPO route
Sebi needs to clarify
1. Whether investigation is ongoing or not? 2. What actions Sebi took after taking information from Adani in Nov-20? 3. Clarify on scope & person involved in investigation mentioned by Govt 4. Whether there investigation is on Adani or its FPIs?
Cont
Cont 5. Whether Adani Enterprises suffice the pre conditions of Fast track FPO as mentioned in reg 155 of ICDR?
Interestingly fast track route of FPO doesn't need Sebi nod.
The remainder of the response consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on irrelevant corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables.
Adani Failed To Specifically Answer 62 of Our 88 Questions
Of The Questions It Did Answer, The Group Largely Confirmed Or Attempted to Sidestep Our Findings
“Good corporate governance is about 'intellectual honesty, not just sticking to rules & regulations, capital flowed towards co that practice good governance'
Mega thread 🧵 of Corporate Governance issues, frauds exposed by us
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Before moving ahead if you want to know who is behind Beat The Street and What exactly Beat The Street does?
1. Have sold Vapi Unit to Adani for ₹835crore which will help in capex, have 200 crore cash after deal 2. repaid its entire debt taken from various Financial Institutions 3. Promoters are buying at levels of 53 to 56 (0.20% till now) 4. Released full promoter pledge