Adani co-owns defence firm with Elara which allegedly helped manipulate its stocks

The Hindenburg Research report that triggered a storm for Adani, mentioned a Mauritius-based fund run by UK's Elara Capital, that was used to manipulate Adani stock prices. Its ELARA India Opportunities Fund had Adani Group firm shares worth Rs 9,000 crore, which accounted for 96 per cent of its portfolio.

Now an Indian Express report has revealed that Elara is also a co-owner of Adani's Bengaluru-based defence firm Alpha Design Technologies.

Not just any defence startup

Incorporated 20 years ago, Alpha works with ISRO and DRDO, and even won a Rs 590 crore defence ministry contract in 2020, to upgrade missiles and radar systems.

Elara Capital, which owns a part of a major defence firm with Adani, is also under investigation in the UK over Hindenburg's allegations, and had ex-PM Boris Johnson's younger brother Jo Johnson on its board.

Adani Defence Systems and Technologies owns 26 per cent of Alpha, but financial statements and shareholding patterns show how Elara and Adani together own 51 per cent of the firm.

Clinching majority stocks through different channels

Adani claims that Elara Capital only has a 0.53 per cent stake in Alpha, but in 2018 it bought a 44 per cent stake in Vasaka Promoters, which is the defence firm's largest shareholder.

Elara IOF's stake in Adani Group was more than 96 per cent, but has only gone down in the past three years because it booked profits when prices went up.

The report comes after a revelation that Vinod Adani is the actual owner of ACC and Ambuja, through Endeavour Trade and Investment that he controls.