Dealing in 3 Adani shares under Sebi lens
Dealing in 3 Adani shares under Sebi lens
Swiggy’s losses increased over 80% in the fiscal year 23; Sebi is investigating Swiggy’s dealings with three Adani companies; AI get CCI notice on Vistara merger
The Adani Group has recently been in the news for two significant reasons. Firstly, the market regulator Securities and Exchange Board of India (SEBI) is closely monitoring transactions involving the shares of three companies within the Adani Group, namely Ambuja Cement, Adani Power, and Adani Green. SEBI suspects the involvement of insider trading in certain share transactions of these companies. The regulator is currently gathering data and investigating the matter.
Secondly, Gautam Adani, the chairman of the Adani Group, has accused certain individuals of using the Hindenburg Report for their own egotistical purposes and spreading misconceptions through various news outlets and social media platforms. The Hindenburg Report is a critical research report that raised concerns about Adani Group’s business practices and financial disclosures.
In other news related to the Adani Group, Swiggy, a popular online platform for food and grocery delivery, reported an increase in losses by 80 percent year-on-year (YoY) in FY23, despite a 26 percent growth in the gross merchandise value (GMV) of its food delivery service. This information was disclosed in Swiggy’s annual financial report. On the other hand, PayU, a fintech investment owned by Prosus (a major investor in Swiggy), witnessed a 31 percent increase in annual revenue to $399 million in FY23. However, due to the discontinuation of its LazyPay card operation, PayU incurred a trading loss of $10 million. Despite this, PayU India is said to be nearing the breakeven point.
The ongoing scrutiny of the Adani Group and its associated companies reflects the increased attention and regulatory oversight placed on large conglomerates in India. The Adani Group, led by Gautam Adani, has grown rapidly in recent years and has diversified its business interests across various sectors such as infrastructure, energy, logistics, and mining. This expansion has brought the group under the spotlight, leading to closer scrutiny from regulators, market participants, and the media.
The involvement of the market regulator SEBI in monitoring transactions related to the shares of Ambuja Cement, Adani Power, and Adani Green indicates a focus on potential irregularities, particularly insider trading. SEBI’s investigation aims to ensure fair and transparent trading practices and maintain investor confidence in the capital markets.
Gautam Adani’s response to the Hindenburg Report suggests that the Adani Group is actively defending itself against allegations and attempting to address any misconceptions or negative perceptions. The Hindenburg Report raised concerns regarding the group’s business practices and financial disclosures, leading to increased scrutiny and public debate. Adani’s statement indicates a determination to protect the reputation and integrity of the group and its various businesses.
In the case of Swiggy, the significant increase in losses despite the growth in GMV highlights the challenges faced by companies in the competitive food delivery market. The food delivery sector in India is highly competitive, with several players vying for market share and investing heavily in expanding their operations. Increasing losses indicate the need for companies like Swiggy to continually invest in infrastructure, technology, and marketing to sustain their growth and remain competitive.
Conclusion
Overall, these developments underscore the complex dynamics of India’s business environment, including the need for regulatory vigilance, the impact of critical reports on corporate reputation, and the challenges faced by companies operating in highly competitive sectors. As the Adani Group and companies like Swiggy navigate these challenges, their ability to address concerns, demonstrate transparency, and adapt to changing market conditions will play a crucial role in their long-term success.
