Exclusive: After $7 Billion Loss In Stock Value, Adani CFO's Explanation

Albula Investment Fund, Cresta Fund and APMS Investment Fund had invested in Adani Group's incubation entity Adani Enterprises well before 2010.

Foreign portfolio investors had invested in Adani Group's incubation entity Adani Enterprises well before 2010 and it is not that these entities are new investors, Jugeshinder Singh, CFO, Adani Group told NDTV in an exclusive interview in the background of the sharp recent dip in stock valuation of the Adani Group. Shares of companies controlled by billionaire Gautam Adani had dived in Monday's session, leading to a slide in stock valuation to the tune of $7 billion, after Economic Times reported that three foreign portfolio investors' (FPIs) accounts - Albula Investment Fund, Cresta Fund and APMS Investment Fund were frozen by the National Securities Depository Limited (NSDL). The Adani Group has denied the media reports, but the share prices are still to stage a recovery. Due to vertical demergers in the company from time to time, these foreign investors received their proportion of shares in the demerged entities of Adani Enterprises, Mr Singh said. "These entities have been investors in our incubation company Adani Enterprises well before 2010. In 2015, we demerged Adani Ports and SEZ from Adani Enterprises; so these entities got their proportion of shares. Then, we demerged Adani Transmission, Adani Green Energy and Adani Total Gas. As the demergers happened, all shareholders of Adani Enterprises kept getting their proportion of shares as these were vertical demergers and it is not that new investments have come in," Mr Singh saisd.