Adani Group issues clarification after shares slump by up to 25% as NSDL freezes foreign funds


The Adani Group led by Gautam Adani has issued a clarification after shares owned by its companies fell by about 5% to 25% on Monday in the immediate aftermath of the National Securities Depository Ltd (NSDL) freezing the accounts of three foreign funds. These foreign funds namely Albula Investment Fund, Cresta Fund and APMS Investment Fund own over Rs. 43,000 crore in four companies of Adani Group and are among the top stakeholders in the firms.

A report by news agency Reuters said that the shares owned by Adani Group companies plunged as much as 25%, its steepest fall in nearly a decade.

According to news agency PTI, Adani Enterprises tumbled 24.99 percent to Rs 1,201.10, Adani Ports and Special Economic Zone plummeted 18.75 percent to Rs 681.50 on the BSE.

Among others, the report added, Adani Green Energy dipped 5 percent to Rs 1,165.35, Adani Total Gas fell 5 percent to Rs 1,544.55, Adani Transmission declined 5 percent to Rs 1,517.25 and Adani Power slumped 4.99 percent to Rs 140.90.

The Adani Group was quick to issue a clarification after the bloodbath in the share market. It said, “This is to clarify that the FPIs in question have been investors in Adani Enterprises Ltd for more than a decade. Demergers (discussed below) have resulted in the ownership mirroring in the portfolio companies.”

It added, “All our businesses were incubated by the Adani Enterprises Ltd. the flagship company, established in 1994, and during the last seven years Adani Ports, Adani Transmission, Adani Green Energy and Adani Gas Ltd were demerged and listed on Indian Exchanges.”

Gautam Adani, a known friend of Prime Minister Narendra Modi, added $32.7 billion to his net worth year-to-date in 2021, making him the second richest person in Asia behind Mukesh Ambani of Reliance Industries Limited. His extraordinary jump in net worth even when average Indians badly suffered in the prolonged period of lockdown due to the coronavirus pandemic.