The Adani Group on Monday termed as "blatantly erroneous" reports about freezing of accounts of three foreign funds that had invested in the group. Media reports had said the National Securities Depository Limited (NSDL) had frozen the accounts of three foreign funds - Albula Investment Fund, Cresta Fund and APMS Investment Fund - after which Adani Group shares came under intense selling pressure.
"We regret to mention that these reports are blatantly erroneous and is 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 stock exchange filing.
Shares of the Adani Group's flagship company Adani Enterprises dropped as much as 25 per cent.
The company said it had an e-mail from the "Registrar and Transfer Agent" saying "that the demat account in which the aforesaid funds hold the shares of the company were not frozen."
Adani Enterprises had requested the Registrar and Transfer Agent for details on the status of demat accounts of the foreign funds.
After the company's clarification, the shares of Adani Enterprises staged a recovery and were down 5 per cent at Rs 1,508 compared to the fall of 25 per cent earlier in the day.
The NSDL website reportedly showed the accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund as being frozen without citing a reason.
The three funds feature among the top 12 investors and owned about 2.1 per cent to 8.91 per cent stakes in five Adani Group companies as of March 31, 2020, annual investor presentations show. The value of their holding in the five Adani group companies was valued at $7.78 billion before the shares witnessed mayhem on Monday.