CHENNAI, June 18 (Reuters) – Shares of companies controlled by Indian billionaire Gautam Adani posted their biggest weekly losses. The six stocks have lost a total of 1.91 trillion Indian rupees ($ 25.83 billion) in five days to Friday.
Indian newspaper Economic Times reported on Monday that the accounts of three Mauritius funds, which are among the main foreign investors in Adani group companies, had been frozen by the National Securities Depository Ltd (NSDL).
The NSDL website showed accounts held by the three funds frozen as of May 31, among thousands of others, without citing a reason, according to a Reuters study. The exact date of the freeze is unknown and the accounts remained frozen on Friday, according to the website.
The companies of the Adani group, in identical statements issued to the stock exchanges, rejected media reports, including those of the Economic Times, calling them “patently false”.
The companies, which operate in the areas of airport and port operations, power generation and transmission, coal and gas trading, said the accounts in which the funds hold shares of Adani had not been frozen.
NSDL and Indian securities regulator SEBI did not respond to requests for comment from Reuters.
But a senior NSDL official, who declined to be identified, told Reuters on Monday that the funds had multiple accounts and Adani’s shares were held in other accounts that were not frozen, adding that the gel was “not new”.
Shares of Adani companies continued to decline, however.
The three foreign funds – Albula Investment Fund, Cresta Fund and APMS Investment Fund – are all registered at the same address, according to the Mauritius financial regulator.
The funds cumulatively control 2.7% of all shares of Adani group companies as of June 11, according to calculations based on an email sent by Adani’s executive to NSDL and reviewed by Reuters.
Two other Mauritius-based funds that are also investors in Adani companies – LTS Investment Fund and Asia Investment Corp – are also registered at the same address.
Reuters could not find a website for the five funds and calls to the phone numbers provided to Mauritian regulators went unanswered.
The five funds have deployed 94.4% to 97.9% of their total capital in shares of Adani companies, according to data from Indian stock analysis firm Trendlyne.
Reuters could not independently verify Trendlyne’s data.
Four of Adani’s six shares have a public stake of around 25% – the minimum level required by regulators for companies listed on Indian stock exchanges.
Data from the Indian Stock Exchange shows that most of the shares of the companies in the Adani group are held by trusts controlled by Adani. Foreign portfolio investors are the next largest shareholders, while retail and domestic investors typically control around 5%.
After falling 0.4-8.5% on Monday, the day of the Economic Times report, shares of Adani Group fell 7.1-22.6% in the week from last Friday’s close, erasing nearly 22% of the gains of the year preceding this week.
This drop resulted in a drop of more than a sixth in the cumulative market capitalization of companies.
Flagship companies Adani rose 8.76% and Adani Ports 7.33% on Friday, but Adani’s other four shares each closed down 5%.
Jimeet Modi, founder of Mumbai-based Samco Securities, said the jump in both stocks was due to some investors buying the stocks after the sharp drop in prices this week, but added that the stocks were “still in. a bear market “.
“I don’t think the market is convinced of the quality of the Adani group’s clarification,” Modi told Reuters.
($ 1 = 73.9120 Indian rupees)
Reporting by Sudarshan Varadhan in Chennai and Abhirup Roy in Mumbai; Editing by Raju Gopalakrishnan
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