Shares of Adani Group companies saw a huge fall on Monday morning. The fall was so sharp that within a few minutes, the lower circuit was hit in these stocks. In fact, the reason for this decline was such reports in which it was said that National Securities Depository Limited (NSDL) has frozen the accounts of three foreign portfolio investors (FPIs). It was also said in these reports that huge investments were made in Adani Group companies through these three accounts. With the arrival of this news, the shares of Adani Group companies started falling drastically. Adani Group has termed these reports as false and misleading.
There was some recovery till the end of the business
However, by the end of the day’s trading, there was a recovery in the shares of Adani Group. Nevertheless, at the time of market closing, the shares of Adani Enterprises were trading at Rs 1,510 per share, down 5.7%. Shares of Adani Ports fell by 9% and Adani Power closed with a fall of 5%. The same was the case with Adani Total Gas and Adani Transmission. However, the shares of Adani Green closed with a marginal gain of 0.68% after making up for the entire loss in early trade.
A report in the morning caused a stir
The names of the three FPIs whose accounts were frozen by NSDL were named Albula Investment Fund, Cresta Fund and APMS Investment Fund. The Economic Times report said that the total investment of these three FPIs in Adani Group companies is more than Rs 43,500 crore. The report also pointed out that action has been taken against all three FPI accounts under the Prevention of Money Laundering Act (PMLA) as they did not disclose sufficient information about the beneficial owners. It was also informed that all the three accounts have been opened in Mauritius and the freezing action was taken before the end of last month. It was also said in the reports that due to the freezing of the accounts, now the shares of Adani Group companies cannot be traded through these three accounts. This is the reason that as soon as the news of freezing of these accounts came, the shares of Adani Group companies fell drastically.
Adani Group’s amazing in one year
There has been a tremendous jump in the stock prices of Gautam Adani’s listed companies in the last one year. According to the report, this thing caught the attention of market regulator SEBI. Since June 2020, the share of Adani Enterprises has seen a dream-like flight of 857 percent. Shares of Adani Transmission have increased by 625 per cent and that of Adani Green by 234 per cent during the same period. Shares of Adani Power, a company active in the business of power transmission, have seen a 275 per cent increase during the last one year. Shares of Adani Total Gas have risen 324 per cent so far this year.
Adani Group chief Gautam Adani has recently been declared Asia’s second richest billionaire after Mukesh Ambani. In just one year, Adani’s wealth grew by $ 43.2 billion, taking his total net worth to $ 77 billion. Adani has been ranked as the 14th richest person in the world in the Bloomberg Billionaires Index.
What advice are you giving to investors?
Commenting on the recent development, Yash Gupta, Equity Resorts Associate, Angel Broking, said that from today four shares of Adani Group have been put in the trade-to-trade (T2T) category, which means that these stocks are now available for intraday trading. will not be allowed and investors will have to hold the shares for any trade. On this basis, Gupta has advised investors to be very careful while investing in the shares of Adani Group. They believe that the shares of group companies are trading at very high prices as compared to other similar companies. They believe that in the current situation, they would not even recommend buying or averaging these stocks at the time of decline.
Adani Group rubbished the report
Responding to the reports, the Adani Group has presented its side in a filing filed with the exchange, in which it has termed these reports as completely false and a deliberate attempt to mislead investors. In this filing, it has said that “In view of the gravity of the published news and its adverse impact on minority investors, we have requested the Registrar and Transfer Agent to clarify the position of the demat accounts of the funds mentioned in the news. We have received their written confirmation through email on 14th June 2021 itself, which clearly states that the demat accounts in which the above funds have held the shares of the company have not been frozen.”
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