Adani Group Loses Over Rs 1 Lakh Crore After NSDL Freezes Three FPI Accounts Worth Rs 43,500 Crore

Mumbai: In what could put a break to Gautam Adani from becoming Asia’s richest and bull run of Adani Group shares, the National Securities Depository Ltd (NSDL) has frozen the accounts of three foreign funds that together own shares worth Rs 43,500 crore in four Adani Group companies.

Reacting to the news, shares of six Adani Group listed firms eroded over Rs 1 lakh crore of market capitalization as shares of Adani Group’s flagship firm Adani Enterprises and Adani Port, and SEZ fell by 20% on Monday morning while Adani Power, Adani Transmission, Adani Green Energy, and Adani Total Gas shares fell by 5%.

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The accounts of Albula Investment Fund, Cresta Fund, and APMS Investment Fund were frozen on or before May 31, as per the depository’s website, meaning that the funds would not sell any of the existing or buy new securities.

The fall in market capitalization of Adani Group listed stocks has made Gautam Adani poorer by $6.3 billion as his fortune plunged to $68.6 billion as of June 14, widening the gap with Asia’s richest Mukesh Ambani with a fortune of $85.8 billion, according to Forbes Real-Time Billionaires list.

Based out of Mauritius, all the three funds are registered with the Securities and Exchange Board of India (SEBI) as foreign portfolio investors (FPIs). They together hold 6.82% in Adani Enterprises, 8.03% in Adani Transmission, 5.92% in Adani Total Gas, and 3.58% in Adani Green. They are registered at the same address in Port Louis and don’t have websites. Adani Group is yet to issue a statement.

A sharp rally in the shares of some Adani Group companies had added more than $40 billion to Gautam Adani’s wealth this year, making him Asia’s second-richest person.

The rapid rise in these stocks, which are held mainly by foreign funds and have a small public float, had also prompted some analysts to raise concerns about the risks involved.