October 22, 2018 (LBO) – The Colombo Stock Exchange (CSE) has notified the marketplace of an enforcement action against listed Adam Investments (AINV).
“Trading of securities of the following company, which is on the watch list, will be suspended with effect from 29th October 2018 in terms of Rule 7.5 (d) (l) (9) of the CSE listing rules, unless the company rectifies the non compliance mentioned below on or before 26th October 2018.”
The rated reason for non-compliance is: “Qualified opinion in the independent auditors report on audited financial statements for the year ended 31st March 2017.”
Trading in Adam Investments (AINV) was opened with great fanfare with former MP Duminda Silva famously ringing the bell at the Colombo Stock Exchange. Since the IPO shares in AINV have crashed. The company raised Rs400mn in an IPO at Rs3/share, and now investors are almost wiped out with the shares are trading at just 10 cents.
Adam Investments is one of the companies in the middle of the Gulamhusein estate battle where many improprieties have been alleged in court proceedings.
Recently, in another company where the Gulamhusein battle is ongoing (Ceylon & Foreign Trades CFT), the High Court issued an enjoining order against Ali Asger Shabbir Gulamhusein and Malayandi Jeyapragash preventing them from disposing, alienating, and or encumbering the assets of CFT.