Shares of Adani group companies fell by about 5 per cent to 25 per cent on Monday after the National Securities Depository (NSDL) froze the accounts of three foreign funds that are among the top stakeholders in the firms. Adani Enterprises, the conglomerate's flagship company, fell as much as 25 per cent, its steepest fall in nearly a decade and Nifty 50-listed Adani Ports and Special Economic Zone fell as much as 19 per cent before paring some losses
The NSDL has frozen the accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund, its website shows without citing a reason for the freeze
A rally in the shares of Adani Group companies had made its chairman Gautam Adani the second richest Asian, behind only Mukesh Ambani, chairman of oil-to-telecom conglomerate Reliance Industries. Shares of Adani Enterprises have risen more than 10-fold over the past year ending Friday, while Adani Transmission shares have gained more than eight-fold and Adani Total Gas Ltd shares are up 1,114 per cent over the same period. Adani Ports has risen 148 per cent, while Adani Green has grown 267 per cent over the last one year. An Adani spokesperson did not immediately respond to a request seeking comment
SEBI and NSDL did not respond to requests seeking comment. However, a report in the Economic Times said the freeze on the three accounts could be because of insufficient disclosure of information related to beneficial ownership.The funds have an investment of Rs 435 billion ($6 billion) in Adani group companies, according to the report.