The Investors Grievances Forum (IGF) has complained to the Securities and Exchange Board of India (Sebi) and the finance ministry that investors had suffered heavy losses in the shares of Adani Enterprises on Wednesday as the stock exchanges allegedly did not follow the rules and established practices when the stock was listed after demerger.
On June 3, shares of Adani Enterprises were listed as a demerged company having hived off its port, power, power transmission businesses. Considering the interest of investors, Adani shares should have been allowed for trading at an adjusted price considering the hiving off its businesses into separate companies or there should have been special session for discovery of price of the shares as it was done in the past.
“Shares of Adani opened at a whopping high of Rs 537, touched a low of Rs 116 and was trading at around Rs 120 … a large number of gullible innocent investors (being not aware of adjusted share prices after demerger or having no knowledge of the cunning way in which exchanges allowed trading of share of Adani Enterprises) who have bought shares at the higher prices have been trapped resulting into losses,” IGF said.
On Thursday, the stock closed at Rs 116.50.
“The fair value of the shares is not more than Rs 120 and as such the trading should not have been allowed at the maximum of Rs 120 per share or special session should have been called for the purpose of determining fair value of shares through the price discovery mechanism,” IGF said. “I discussed abnormal movement of demerged shares of Adani with the finance ministry,” said IGF President and BJP (MP) Kirit Somaiya.
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