Shares of Adani Ports and Special Economic Zones' (APSEZ) fell more than two percent intraday on Wednesday after Norway's largest pension fund, KLP, decided to divest from its Myanmar project.
KLP, a Norwegian pension fund, announced on Tuesday that it is divesting from APSEZ because the company's ties to the Myanmar military violate the fund's responsible investment policy. KLP has a $1.05 million investment in APSEZ.
Adani Ports has been under scrutiny about its plan to develop a container terminal in Yangon on property leased from a Myanmar military-owned business.
There have been international criticism and sanctions against Myanmar following a military coup on February 1 and a subsequent crackdown on huge protests that resulted in the deaths of hundreds of people.
According to KPL, the military forces might use the port to import weapons and equipment or as a naval base, resulting in continued human rights violations.
Adani denounced the violence in Myanmar and violations of its people's fundamental rights and said that when the deal was struck in 2019, its counterparties were democratically-elected government bodies.
Adani also reaffirmed that if the project is deemed to violate US sanctions, it may leave it and write down the investment.
At 12 pm, shares of Adani Ports were trading 0.94 percent lower at Rs 735.95 apiece on the BSE.
(Edited by : Ajay Vaishnav)