Adani Group on Monday issued clarification after an Economic Times report claimed that accounts of 3 FPIs owning Adani Group shares were frozen. Terming the report ‘blatantly erroneous’, Adani Group said that the reporting was done to mislead the investing community. The report suggested that NSDL had frozen accounts of three foreign funds – Albula Investment Fund, Cresta Fund and APMS Investment Fund.
Economic Times report had suggested that the National Securities Depository Limited (NSDL) has frozen accounts of three foreign portfolio investors (FPIs) holding shares in the group companies. Subsequently, shares of various companies of Adani Group dropped sharply. The group’s flagship company, Adani Enterprises Limited’s shares dropped by 25%.
Adani Enterprises requested Registrar and Transfer Agent with respect to the status of demat accounts of the foreign funds and received written reply from them clarifying that Demat Account in which the aforesaid funds hold the shares of the Company are not frozen, Adani Enterprises added.
Why Adani shares fell
Earlier in the day, the shares of various Adani group companies fell sharply after media reports suggested the three FPIs which collectively have a major stakeholding had not fulfilled the KYC (Know Your Customer) norms. Together, Albula Investment Fund, Cresta Fund and APMS Investment Fund own shares worth Rs 43,500 crore in Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas.
The Adani Group shares had been doing phenomenally last one year and had outperformed benchmarks by massive margin. However, following the reports of NSDL freezing its FPI accounts, the share prices fell sharply. However, Adani Group has now clarified that no such accounts are frozen.
