Adani Group stocks slump as shareholding questions get raised authoritatively

Adani sign on a board in news photo

While it isn't clear what NSDL's activity will impact for these organizations, financial investors appear to be stressed that the expanded investigation might actually bring about changes in shareholding pattern, which may mean an expansion in free float. Regardless, the administrative glare in itself is a concern.

Adani Group stocks had easily topped the league tables regards post-Coronavirus market returns. As called attention to in these pages in March, five of the best 10 stocks as far as returns post-Coronavirus were from the Adani Group.

A loosely held bit of information in the business sectors was that the sharp rise in these stocks was because of a low free float in the most of these stocks. Advertiser holding is around 75% for most stocks in the group, and a large portion of the rest of held by a bunch of unfamiliar financial investors who are common financial investor in some group firms. This means that the effective free float was extremely low, creating an abnormal scarcity in the company’s shares. While numerous news reports have raised up questions about this unique set of foreign financial investors, none of them had an impact on the rally in Adani Group stocks.

Adani Group stocks decline on report some FPI accounts frozen

For the first time, on Monday, questions about shareholding were raised officially. The Economic Times reported that National Securities Depository Ltd (NSDL) has frozen the records of three of the foreign venture firms that held Adani Group stocks. The report added that the freeze could be a result of insufficient information of data with respect to ownership.

This has resulted about hefty selling in stocks of firms in the group.

The three firms whose records were frozen by NSDL, as per the ET report, are Albula Investment Fund Ltd, Apms Investment Fund Ltd and Cresta Fund Ltd.

According to information collected by Trendlyne.com, Albula Investment Fund had 18 disclosed holding as of March 2021 and 95% of its portfolio value came from only four property in Adani Group firms. 

Source: Economics Times

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