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India

Adani Group stocks lose more ground despite rejecting report on investors

3 minute read

The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India, April 13, 2021. REUTERS/Amit Dave

BENGALURU, June 16 (Reuters) - Shares in companies controlled by Indian billionaire Gautam Adani fell again on Wednesday, adding to their losses stemming from a media report that said accounts of three foreign investor funds that own stocks had been frozen.

The companies involved had rejected the report earlier this week, calling it "blatantly erroneous."

Adani Enterprises (ADEL.NS), Adani Green Energy (ADNA.NS), and Adani Ports and Special Economic Zone (APSE.NS) fell as much as 3.3% to 4.7% on Wednesday, while shares of Adani Total Gas (ADAG.NS), Adani Transmission (ADAI.NS) and Adani Power (ADAN.NS) hit their lower circuit limits.

The Economic Times newspaper had reported on Monday that the National Securities Depository Ltd (NSDL) had frozen accounts of three foreign funds that are among the top foreign investors in Adani Group stocks. The companies lost more than $6 billion in market capitalisation following the report. read more

However, the NSDL on Tuesday clarified that the accounts of the foreign funds remained active.

Still, shares in Adani companies have continued to fall. From their closing levels on Monday to session lows on Wednesday, they have shed between 0.9% to 9.7%.

In the past year, a broad surge in Adani Group companies have made Gautam Adani the second richest Indian, behind Mukesh Ambani, chairman and managing director of oil-to-telecom conglomerate Reliance Industries (RELI.NS).

Reporting by Anuron Kumar Mitra in Bengaluru; editing by Uttaresh.V

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