SEBI alleges Pranav Adani violated insider trading norms: Report

Markets regulator SEBI has accused Pranav Adani, a key director in the Adani Group, of breaching insider trading regulations by sharing unpublished price sensitive information ahead of a major acquisition, according to a report by Reuters.

According to the Reuters report, SEBI sent a notice to Pranav Adani last year, alleging that he disclosed details of Adani Green Energy’s 2021 acquisition of SB Energy Holdings to his brother-in-law Kunal Shah before the deal became public.

The SEBI report alleged that Adani “communicated unpublished price sensitive information pertaining to the SB Energy acquisition” in violation of insider trading rules. The document further alleged that Kunal Shah and his brother Nrupal Shah traded shares of Adani Green based on this information, earning “ill-gotten gains” of ₹9 million ($108,000), the Reuters report added.

In a response to Reuters, Pranav Adani, who is nephew of Gautam Adani, maintained that he “has not violated any securities law” and is pursuing a settlement “to put an end to the matter, without admission or denial of the allegations.”

The acquisition in question, finalised in October 2021, saw Adani Green Energy Ltd purchase SB Energy India — a joint venture between Japan’s SoftBank Group and Bharti Enterprises — for an enterprise value of $3.5 billion. The acquired portfolio included 5 GW of renewable assets across four Indian states, comprising 1,700 MW operational capacity, 2,554 MW under construction, and 700 MW nearing construction.

With 84% solar capacity (4,180 MW), 9% wind-solar hybrid (450 MW), and 7% wind (324 MW), the portfolio was among the highest quality renewable asset groups in India. Adani Green described the assets as being developed and maintained under best-in-class standards.

Following the deal, Adani Green Energy’s operational capacity increased to 5.4 GW, with a total locked-in portfolio of 19.8 GW, marking a fourfold expansion.