Following this development, Adani Enterprises, the conglomerate’s flagship company, fell as much as 25 per cent to hit an intraday low of Rs 1,201.10.
The stocks of Adani Group on Monday saw a sharp decline after the National Securities Depository Limited (NSDL) took action against three foreign accounts that are among the top stakeholders in the firms.
Following this development, Adani Enterprises, the conglomerate’s flagship company, fell as much as 25 per cent to hit an intraday low of Rs 1,201.10, down over Rs 400 from last week’s close of Rs 1,601.45. witnessing one of its steepest falls.
The other 6 listed companies under the Adani group also suffered a blow following NSDL’s action.
Adani Green Energy was down 5 per cent at Rs 1,156.85 per share; Adani Total Gas was down 5 per cent at Rs 1,544.90 per share; Adani Transmission was down 5 per cent at Rs 1,522.50 per share.
The National Securities Depository Ltd. froze the accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund effective May 31, according to the NSDL’s website. The action could be due to insufficient disclosure of information regarding beneficial ownership, the Economic Times reported on Monday, citing people it didn’t identify.
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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.
The development seems to have spooked investors of Adani group companies that have seen a meteoric rise since 2020. A correction in the short-to-medium term can be expected, according to stock market analysts.
Notably, this meteoric rise in the last year also helped Gautam Adani become Asia’s second richest man.
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