Adani stocks tumble further, three of six hit lower circuit

Topics Adani Group | stocks | FPIs

The Adani group stocks extended losses on Wednesday. Adani Power, Adani Total Gas and Adani Transmission hit their 5 per cent lower trading limit for a third straight day. 

Adani Ports and Adani Enterprises tumbled 7.2 per cent and 5.8 per cent respectively, while Adani Green Energy fell the least at 3.1 per cent. 

The six group stocks are down between 4.5 per cent and 16 per cent this week following reports that the accounts of top foreign portfolio investors (FPIs) have been frozen, which the company, investors and NSDL have clarified is not true. 

The Adani group has termed the reports as “blatantly erroneous and done to deliberately mislead the investing community”. Data available on NSDL’s website as on May 31 shows an ‘account level freeze’ on Albula Investment Fund, Cresta Fund, and APMS Investment Fund —Mauritius-domiciled FPIs with combined investments of ~30,000 crore in Adani group companies. 

On Tuesday, the Adani group disclosed a communication by NSDL that the demat accounts belonging to the three FPIs remained ‘active’ but are in “suspended for debit” status in terms of Sebi order dated June 16, 2016.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel