Gautam Adani, founder of Adani Group, India’s second richest man. The shares of his companies have been rising rapidly over the past few years to give investors a return. But on 14th June, there was a sudden slip. As a result, shares of Adani Group of Companies fell sharply in trading.
According to news agency PTI, shares of Adani Group fell so far as 25 percent. The reason for this decline is three foreign companies.
Foreign companies investing in Indian stock exchanges are required to disclose details of their ownership. Three companies that have made substantial investments in the Adani Group without respecting this provision have not disclosed their owners information. Subsequently, the companies were issued a serious warning by the NSDL, which manages the ownership of shares traded on the Indian Stock Exchange.
Shares of Adani Group began to fall within hours of reports that NSDL had frozen some accounts of related investors.
Various business media outlets have reported that Adani lost Rs 55,000 crore in a single day.
Shares began to fall between 5 percent and 25 percent. Adani Enterprises was down 25 percent and Adani Ports and Special Economic Zone was down 19 percent. Adani Green Energy fell 5 percent, Adani Gas fell 8 percent, Adani Transmission fell 5 percent and Adani Power fell 5 percent.
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Meanwhile, the three foreign-invested companies involved have reportedly invested a total of Rs 43,500 crore in Adani Group shares, all three of which are registered in Mauritius.