14th June 2021, A new day and sort of new beginnings for share market as listed companies, traders, investors have high hopes that on Monday markets open on a positive note. But for Adani group something else happened which was not expected to. Shares of Adani group of companies started becoming one of people’s focal point. This was because the share price of the group of companies decreased up-to 25%. Here are the 5 detailed pointer what happened on that day. Shares of Adani group of companies witnessed a massive decrease amid reports that stated National Securities Depository Ltd (NSDL) has frozen 3 main FPI accounts that have holding in some of these firms. • Adani Enterprises decreased 24.99% to Rs 1201.10 • Adani ports and SEZ decreased 18.75% to Rs 681.50 (BSE) • Adani Energy dipped 5% to Rs 1165.35 • Adani total Gas decreased 5% to Rs 1544.55 • Adani transmission decreased 5% to Rs 1517.25 • Adani Power decreased to 4.99% to Rs 140.90 The report claiming that the FPI accounts were frozen was of 31st May 2021 Foreign Portfolio Investors,Mauritius based funds • Albula Investment Fund Ltd • APMS Investment Fund Ltd • Cresta Fund Ltd The above funds are major 3 of top 12 investors who hold approx. of 2.1% to 8.91% holding in major five Adani group of companies as of 31st March 2020. The total value of all holdings before the mayhem which was witnessed on Monday is USD 7.78 Billion. National Securities Depository Ltd (NSDL) website said that the foresaid accounts has been frozen without citing a reason (as per report of news agency PTI). It listed the three accounts as “Account Level Freeze” However, source at the group said that registrar has in writing stating that the accounts that has holding of Adani group stocks have not been frozen. Adani Group stated that they have confirmation that accounts of three foreign funds that are among its top shareholders are not frozen and reports are misleading the investing community. Also, this is causing irreparable loss of economic value to the investors at large and reputation of the group, they said. Recovery on same day: • Adani Enterprises closed at 1501.25 (Still a loss of 6.26%) • Adani Ports closed at 768.70 (Still a loss of 8.36%) Lastly, before an official news a confirmation should have been taken from the Adani group of Companies stating about the freeze of accounts. If these steps were taken then maybe such a downfall might not have occurred. Thank you.
Perfectly explained
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