The share price of Adani Ports and Special Economic Zone (APSEZ) slumped over 5 percent in early trade on Tuesday on reports that S&P Dow Jones Indices removed the stock from its sustainability index.
S&P Dow Jones Indices said it has removed the company from its sustainability index due to the firm’s business ties with Myanmar’s military which is accused of human rights abuses after a coup this year, Reuters reported.
India’s largest private multi-port operator is building a $290 million port in Yangon on land leased from the military-backed Myanmar Economic Corporation (MEC).
It will be removed from the index prior to the opening on Thursday, April 15, it said in a statement on Tuesday.
Adani Group said on March 31 it would consult authorities and stakeholders on its port project in Myanmar, after human rights groups reported its subsidiary had agreed to pay millions of dollars in rent to the military-controlled firm.
The share price of Adani Ports has gained more than 53 percent in 2021 so far on the back of strong business and key acquisitions made by the company.
At 10:05 am, the shares of the company were trading 0.73 percent lower at Rs 739.00 apiece on the BSE.