Adani Stocks Plunge as Some Foreign Investor Accounts Frozen
Shares of some companies controlled by billionaire Gautam Adani plunged after a report said accounts of three Mauritius-based funds that own the group’s stocks have been frozen. The National Securities Depository Ltd. froze the accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund effective 31 May, according to the NSDL’s website.
The action could be due to insufficient disclosure of information regarding beneficial ownership, the Economic Times newspaper reported on Monday, citing people it didn’t identify.
The funds, registered at the same address in Port Louis, own more than 435 billion rupees ($6 billion) in four Adani Group firms, the report said, adding that the frozen accounts won’t be able to sell or buy new securities. Adani Enterprises Ltd. dropped as much as 25% while Adani Ports & Special Economic Zone Ltd. slipped as much as 19%.
Adani Total Gas Ltd., Adani Green Energy Ltd., Adani Power Ltd. and Adani Transmission Ltd. all fell by their 5% limit. An Adani Group spokesperson declined to comment immediately. A spokesperson for capital markets regulator Sebi didn’t immediately respond to a request for comments. Authorities must be “vigilant” on the sharp price moves in Adani Group stocks, said Shriram Subramanian, founder of proxy advisory firm InGovern Research Services Pvt.
“Sebi should also investigate the concentration of holdings by select funds without disclosure of beneficial owners,” he said. A sharp rally in the shares of some of the Adani Group companies had added over $40 billion to Gautam Adani’s wealth this year through Friday, making him the second-richest person in Asia. (Bloomberg)