(Bloomberg) -- Shares of companies controlled by Indian billionaire Gautam Adani slipped for a second day, as investors sought clarity over a local media report Monday that accounts of three Mauritius-based funds that own the group’s stocks were frozen.
Adani Total Gas Ltd., Adani Power Ltd. and Adani Transmission Ltd. all fell by their 5% daily limit in early trading in Mumbai. Adani Ports & Special Economic Zone Ltd. and flagship Adani Enterprises Ltd. slipped a little over 1%.
The volatile moves suggest that investors remain concerned after the Economic Times said the National Securities Depository Ltd. froze the accounts of Albula Investment Fund, Cresta Fund and APMS Investment Fund. It said the action was probably due to insufficient information on the owners, citing people it didn’t identify.
While the Adani group initially said the report was “blatantly erroneous,” its statement Tuesday said three demat accounts of Cresta, Albula and APMS are “suspended for debit,” adding to the confusion over the status of the offshore funds.
The group’s stocks have rallied since the start of 2020, helping Adani, 58, add more than $39 billion to his personal fortune this year alone -- the biggest among the world’s top 15 wealthiest people -- making him Asia’s second-richest person. Those gains are at risk now over the status of these funds.
The quick surge in the stocks combined with equity largely held by overseas funds with very little public float present risks to Adani shares, Bloomberg Intelligence analysts wrote last week.
Adani Enterprises and Adani Ports recouped the bulk of their intraday losses on Monday after the conglomerate’s rebuttal of the report, saying they have confirmation from the Registrar and Transfer Agent that the demat account in which these funds hold the shares is not frozen.
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