Blatantly erroneous: Adani Group rejects report on FPI account freeze

Adani Enterprises, the flagship firm of the Adani Group, has denied a report that claimed NSDL had frozen three foreign funds that hold shares worth Rs 43,500 crore in four listed firms of the conglomerate.

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Blatantly erroneous: Adani Group rejects report on FPI account freeze
Adani Enterprises, the flagship company of the Gautam Adani-led conglomerate, released a statement and rejected the media report. (Photo: Reuters)

Adani Group has clarified that the report about National Securities Depository Limited (NSDL) freezing three accounts, which had invested in four listed firms of the conglomerate, was “blatantly erroneous”.

The clarification comes after The Economic Times reported that the NSDL had frozen three FPI accounts — Albula Investment Fund, Cresta Fund and APMS Investment Fund — that hold shares to the tune of Rs 43,500 crore in the Adani Enterprises Limited (AEL), Adani Total Gas Limited (ATGL), Adani Transmission Limited (ATL) and Adani Green Energy Limited (AGEL).

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The report further highlighted that the Securities and Exchange Board of India (Sebi) has initiated an investigation to find out if there have been any price manipulation in shares of Adani group companies.

Explained: Why Adani Group shares fell sharply on stock market

Reacting to the report, Adani Enterprises, the flagship company of the conglomerate, released a statement and rejected the media report.

“We regret to mention that these reports are blatantly erroneous and are 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,” Adani Enterprises said in a statement.

"Given the seriousness of the article and its consequential adverse impact on minority investors, we requested Registrar and Transfer Agent, with respect to the status of the Demat Account of the aforesaid funds and have their written confirmation vide its e-mail dated 14 June 2021, clarifying that the Demat Account in which the aforesaid funds hold the shares of the Company are not frozen,” it added.

Soon after the report, shares of all listed Adani companies fell sharply on the stock market and hit lower circuits within the first hour of trade. While shares recovered to some extent by the end of the trading session, all the group’s companies closed weaker.

The sharp fall stocks have attracted warnings from analysts who have advised investors to be cautious about investing in Adani group companies over the next few weeks.