The Adani Group lost nearly ₹44,898 crore in market value on Monday as shares of group companies plunged. News of freezing of FPI accounts, a tweet by Sucheta Dalal and an explosive story by CNBC TV 18 all played a role.
1. The year also saw Gautam Adani becoming the second richest man in India as the market cap of his stocks went up from 2 lac crore to 9.5 lac crore. Surprisingly, the group firms have relatively low analyst coverage.
2. During the year, Adani Enterprises gained 741%, Adani Ports 100%, Adani Green 245%, Adani Transmission 650%, Adani Power 271% and Adani Total Gas 1,066%.
3. CNBC TV18 (Mukesh Ambani owned) did an analysis of the shareholding of the companies and the FPIs who cornered the free float. Economic Times followed it up with info on three of the FPIs demat account being frozen for lack of info on beneficial ownership.
4. The skyrocketing price of Adani stocks, made possible by sucking out free float by Seven Foreign Portfolio Investors(FPIs) based out of Mauritius, making price manipulation possibile. The promoters own 74.5% of the equity, just short of the mandatory 75% in all companies.
5. CNBC TV18 reported that In 3 Adani Group stocks - Transmission, Enterprises and Total, the free float is just around 3% with the rest being held by the FPIs and LIC. The seven FPIs hold close to 20% of the 25% free float, with LUC chipping in for the balance.
6. CNBC TV18 also reported that the seven FPIs invested most of their funds only in Adani Stocks:
Elara invested 97.95% of its fund;
Cresta, invested 97.7%
Abula invested 95.4%
Vespara invested 99.4%
Asia Investment Corp has 99.2%
LTS has 97.3% and
APMS has 96.9%.
Elara invested 97.95% of its fund;
Cresta, invested 97.7%
Abula invested 95.4%
Vespara invested 99.4%
Asia Investment Corp has 99.2%
LTS has 97.3% and
APMS has 96.9%.
7. Sucheta Dalal tweeted "Another scandal hard to prove outside the black box of information available with SEBI tracking systems is the return of an operator of the past who is relentlessly rigging prices of one group. All through foreign entities!"
8. Here we have - Adani Group stocks; little analyst coverage, having run up 4 to 10 times in a single year; promoter holding close to the maximum 75% and the balance held by FPIs with little details of the beneficial owners.
Sums up Adanis, FPIs and Stock Markets for You.
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Sums up Adanis, FPIs and Stock Markets for You.
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