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Shares of companies linked to India’s tycoon, Gautam Adani, one of Asia’s richest men, fell sharply after the country’s largest stock exchanges froze billions of dollars worth of foreign fund accounts.
Four of the six listed companies in the Adani Group reduced the maximum amount allowed by exchange rules on Monday, and the $ 1 billion Adani Ports & Special Economic Zone fell to 19 percent.
Following the announcement by India’s National Securities Depository, it reported that it had frozen its Mauritius-based Albula Investment Fund, Cresta Fund and APMS Investment Fund accounts. The Indian newspaper The Economic Times reported that the move to prevent funds from trading shares was due to a lack of documentation on the beneficial ownership of the entities.
Adani’s net worth has risen to $ 44 billion this year from $ 78 billion, based on the share prices of companies that link their energy apples to the conglomerate. That prompted him The second richest man in Asia, Past Chinese technology titans such as Jack Ma from Alibaba and ByteDance founder Zhang Yiming and away from the chair of Reliance Industries. Mukesh Ambani.
According to Bloomberg data, the fall in shares linked to Adani on Monday wiped out more than $ 6 billion from the tycoon’s net worth, placing it at less than $ 71 billion.
Last year, shares of Adani Transmission rose 640 percent, Adani Enterprises 860 percent and Adani Total Gas 1,030 percent.
But analysts have expressed concern about shares with few funds from abroad and a small public float.
Bloomberg Intelligence analysts wrote in a note last week that the rallies for shares of Adani Total Gas, Adani Enterprises and Adani Transmission were “extended”.
“Among the largest foreign investors are some Mauritian funds that hold more than 95 percent of the assets of these companies,” analysts said. “Such concentrated positions, along with negligible land ownership, create an asymmetric risk reward, as large investors significantly avoid Adani.”
The Adani Group declined to comment. NSD did not immediately respond to the request for comment.
The Indian stock market has just hit rock bottom records even as the economy struggles to recover from a second serious wave of coronavirus infections.
MSCI index provider Adani added three shares to the Indian index in May.
Adani has attracted international partners in its drive to become one of the world’s largest renewable energy companies. In total in January it bought a 20 percent stake last month in Adani Green Energy get Indian energy unit of the Japanese SoftBank technology group.
The infrastructure mogul has been criticized for his debate Carmichael coal mine Australia, which has suffered global protests against the environment.
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