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In a development that may shed some light on the Adani probe, it has been revealed that the controlling shareholder of Opal Investment Private Ltd -- the largest public investor in Adani Power Ltd -- is a "single-person company" that was established in the UAE in May 2019.
According to a report by The Indian Express, which claimed to have access to corporate records, Opal Investment Pvt Ltd is also among the 13 overseas funds under SEBI scrutiny.
SEBI's investigation had earlier pointed to Zenith Commodities General Trading LLC as the controlling shareholder of Opal Investment Pvt Ltd, with Adel Hassan Ahmed Alali of UAE identified as its beneficial owner.
However, in July 2020, Adel also assumed directorship of Opal Investments (Mauritius), recorded with the address of Trustlink International, a corporate service provider, the IE report further said.
The said corporate records further indicate that Opal Investment has severed ties with its corporate agent, Trustlink International, following its connection to the Adani Group in the Hindenburg report.
The Adani-Hindenburg report -- which was released in January -- had also raised concerns about Opal Investment's lack of online presence, absence of employees on LinkedIn, and dearth of marketing materials or records of participation in investment conferences. The report also alleged that Opal's investment portfolio was comprised "solely of Adani Power shares", thus lacking "diversification".
Interestingly, the Hindenburg report also pointed out that Opal Investment was formed on the same day -- in the same jurisdiction and by the same corporate service provider -- as another entity, Krunal Trade & Investment Pvt Ltd, which was set up under Vinod Adani, Gautam Adani's elder brother, as a director. Both entities were reportedly established on October 4, 2005, in Mauritius, by the same corporate services provider (Trustlink International).
Apart from that, Trustlink’s CEO is known to have publicly mentioned that he “sits on the board of … the Adani Group”, as pointed out by the IE report. He also apparently figured in the DRI’s investigation into over-invoicing charges against the conglomerate, the report further said.
As of June 14, the records accessed showed that Opal Investment roped in a new management company, LTS Management Services Ltd, which assumed the role of fund secretary and also provided two nominee directors.
Concurrently, Opal Investment altered its registered address to that of LTS Management. Adel, however, retained his position as the third director, and remained associated with Trustlink's address.
During this transition in agency representation, Opal Investment also registered a website on May 26. The website opalinvest.net now attests to Opal Investment Pvt Ltd's incorporation in Mauritius on October 4, 2005, along with its receipt of a Category 1, Global Business License from the Financial Services Commission, Mauritius.
“The principal activities of the company are that of investment holding and general trading activities” and that “the company is operated by professionals", the website reads.
The Adani Group had earlier said Opal Investment was one of its public shareholders in the listed companies in the Adani Portfolio.
“Innuendoes that they are in any manner related parties of the promoters are incorrect. A listed entity does not have control over who buys/sells/owns the publicly traded shares or how much volume is traded, or the source of funds for such public shareholders nor is it required to have such information… under (the) laws of India. Hence we cannot comment on trading pattern or behaviour of public shareholders,” it had also said, according to the publication.
Following the merger of Opal Investment's subsidiary Growmore Trade and Investment Pvt Ltd with Adani Power Ltd (APL), the former came to own an 8.91 per cent stake in APL.
As of March 31, Opal Investment’s stake was at 4.69 per cent -- the largest public holding in APL.