Connect with us

Hi, what are you looking for?

Share Market

Adani Group shares tank on news of NSDL freezing FPI accounts; co says no freeze on accounts holding its stock

Financial Express - Business News, Stock Market News

The three accounts frozen by the NSDL included Albula Investment Fund, Cresta Fund, and APMS Investment Fund.

Adani Group stocks took a heavy beating on Dalal Street today morning, hitting the lower circuit within the initial minutes of trade. The fall in Adani Group shares came after reports surfaced that National Securities Depository Limited (NSDL) froze three accounts of Foreign Portfolio Investors (FPI) that owned a significant stake in Adani Group Companies. At the end of the day’s trade Adani Enterprises recouped most losses but was still down 5.7% at Rs 1,510 per share, Adani Ports closed 9% lower. Adani Power ended 5% in the red, accompanied by Adani Total Gas and Adani Transmission. Adani Green recovered all losses and closed 0.68% higher.

The three accounts frozen by the NSDL included Albula Investment Fund, Cresta Fund, and APMS Investment Fund. These three FPI accounts together own more than Rs 43,500 crore worth of shares in four Adani Group companies, The Economic Times reported. The action could have been taken against the three FPI accounts for insufficient disclosure of information regarding beneficial ownership as per the Prevention of Money Laundering Act (PMLA), the report said. The accounts are believed to have been frozen on or before the end of last month. Freezing of the account will prevent the three FPI accounts from buying or selling shares of Adani Group companies. All the frozen accounts are based out of Mauritius.

Gautam Adani has recently taken the crown of Asian second-richest man, sitting behind Mukesh Ambani. The wealth of Gautam Adani has increased by $43.2 billion so far this year, taking his net worth to $77 billion. Adani is now the 14th richest person in the world, according to the Bloomberg Billionaires index. 

The share price of Gautam Adani’s listed companies have seen a massive jump in the last one year, which according to the report has caught capital market regulator SEBI’s attention. Adani Enterprises is up 857% since June 2020. Adani Transmission has surged 625% during the same period, while Adani Green is up 234%. The power transmission business, Adani Power has seen the stock price surge a massive 275% in the last one year while Adani is up 113%. The newly named Adani Tota Gas is up 324% so far this year. “From today four Adani group stocks have been shifted to T2T (Trade 2 Trade) which means that intraday trading will not be permitted and investors need to take/give holding for any trade. We suggest investors be cautious on Adani group stocks, trading at very high valuations compared to peers. Buy on dips or averaging the buy position should be avoided for the time being,” said Yash Gupta Equity Research Associate, Angel Broking.

Update

Responding to the reports, Adani Group in an exchange filing said, “We regret to mention that these reports are blatantly erroneous and is done to deliberately mislead the investing community.” “Given the seriousness of the article and its consequential adverse impact on minority investors, we requested Registrar and Transfer Agent, with respect to the status of the Demat Account of the aforesaid funds and have their written confirmation vide its e-mail dated June 14, 2021, clarifying that the Demat Account in which the aforesaid funds hold the shares of the Company are not frozen,” they added.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Technology

Cybercriminals Adopt the Blockchain to Broadcast confidential Messages A group of analysts from SophosLabs represents that programmers working the crypto-jacking malware, Glupteba, have been...

Technology

PUBG unban in India soon as PUBG Corp. Will The Government Of India Unban PUBG? PUBG Mobile was Ban in India, PUBG organization has...

Technology

A standard method to execute Bitcoin could be powerless against double-spending, the new examination has found. Blockchain sleuths at ZenGo, a wallet startup, have...

BlockChain News

HDD mining, also known as “storage mining”, is a process of obtaining cryptocurrency based on hard disk memory. Compared with traditional POW mining, hard...