Adani Group stocks lose more ground despite rejecting report on investors

The companies involved had rejected a report on investors earlier this week, calling it 'blatantly erroneous'

Shares in companies controlled by Gautam Adani fell again on Wednesday, adding to their losses stemming from a media report that said accounts of three foreign investor funds that own stocks had been frozen.

The companies involved had rejected the report earlier this week, calling it "blatantly erroneous."

Read more: Report on freeze on foreign funds wrong: Adani Group

Adani Enterprises, Adani Green Energy, and Adani Ports and Special Economic Zone fell as much as 3.3% to 4.7% on Wednesday, while shares of Adani Total Gas, Adani Transmission and Adani Power hit their lower circuit limits.

The Economic Times newspaper had reported on Monday that the National Securities Depository Ltd (NSDL) had frozen accounts of three foreign funds that are among the top foreign investors in Adani Group stocks. The companies lost more than $6 billion in market capitalisation following the report.

However, the NSDL on Tuesday clarified that the accounts of the foreign funds remained active.

Still, shares in Adani companies have continued to fall. From their closing levels on Monday to session lows on Wednesday, they have shed between 0.9% to 9.7%.

In the past year, a broad surge in Adani Group companies have made Gautam Adani the second-richest Indian, behind Mukesh Ambani, chairman and managing director of oil-to-telecom conglomerate Reliance Industries.