'Blatantly erroneous': Adani group on reports of NSDL freezing 3 FPI accounts

After reports on the National Securities Depository Ltd (NSDL) freezing accounts of three foreign funds holding shares in Adani Group companies, the Adani group has termed them "blatantly erroneous".

"We regret to mention that these reports are blatantly erroneous and is done to deliberately mislead the investing community. This is causing irreparable loss of economic value to the investors at large and reputation of the group," the Adani group told the stock exchanges today.

Adani Enterprises share tumbled 25 per cent today, the most, among Adani Group stocks, after National Securities Depository Limited (NSDL) reportedly froze the accounts of three foreign funds owning over Rs 43,500 crore worth of shares in four Adani Group companies. The three foreign funds are Albula Investment Fund, Cresta Fund and APMS Investment Fund.

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These three funds collectively owned about 2.1 per cent to 8.91 per cent stake in five Adani group companies as of March 31, 2021. The value of their stakes in these companies -- Adani Power, Adani Enterprises, Adani Green, Adani Transmission and Adani Total Gas Ltd -- had surged 10 times since March 2020 to $7.78 billion today, reported Reuters.

Meanwhile, Adani group added that "with respect to the status of the Demat Account of the aforesaid funds and have their written confirmation vide its e-mail dated 14th June, 2021, clarifying that the Demat Account in which the aforesaid funds hold the shares of the Company are not frozen."

Share of Adani Enterprises lost 25 per cent to Rs 1,201 against the previous close of Rs 1,601.45 on BSE. The stock of the Adani Group's flagship firm opened with a loss of 10 per cent at Rs 1,441.35 today. However, the share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20-day moving averages.

The share has zoomed 830 per cent in one year and risen 196 per cent since the beginning of this year. In a month, the stock has gained 16.22 per cent. The market cap of the firm fell to Rs 1.56 lakh crore on BSE. Other Adani Group stocks such as Adani Ports and Special Economic Zone plummeted 18.75 per cent to Rs 681.50 on the BSE today.

Meanwhile, the huge stock crash has led to a fall of over 10 per cent in the company market cap, wiping out about Rs 1.03 lakh crore from the market. Adani group's market cap stood at Rs 9.5 lakh crore on Friday, while it went down to Rs 8.5 lakh crore at opening of the market before bouncing back to Rs 8.9 lakh crore by closing of the market.

Also read: After 800% rally in one year, this Adani stock lost 25% post NSDL action today

Also read: NSDL freezes three FPI accounts owning Adani Group shares worth Rs 43,500 crore

Also read: Explained: Why Adani Group stocks hit lower circuit today