FPIs hike stake in Adani Group companies as SC clears air on allegations

Foreign portfolio investors and mutual funds have hiked holding in Adani group companies, even as the long-term investor LIC booked profit in two Group companies.

As per the latest shareholding pattern released for 7 out of 11 Adani Group companies, FPIs raised stakes in six - Adani Enterprises, Adani Ports, Adani Power, Adani Green Energy, Adani Wilmar and Adani Total Gas.

The hike in FPIs holding in these companies comes after the Supreme Court in January ruled that there is no need for a separate investigation following the US short-seller Hindenburg Research report which made serious allegations against the Group.

• Also read: Adani Group’s Ambuja Cements to acquire My Home Group’s cement grinding unit in Tuticorin

Rahul Ghose, CEO, Hedged.in said though on the higher side of valuations, Adani Enterprises and Adani Ports are on the buy zone as they had good run on topline and operating profit over the last few quarters.

“Investors can consider these companies for long term investment given the short term challenges and volatility in the market,” he added.

FPIs have raised stake in Adani Ports to 13.80 per cent in March quarter against 13.17 per cent in December-end while their holding in Adani Power and Adani Green Energy had gone up to 15.91 per cent and 16.33 per cent from 15.86 per cent and 15.76 per cent in the same period.

Similarly, FPIs holding in the Group’s flagship company Adani Enterprises had increased to 11.45 per cent from 11.12 per cent in the same period. Adani Wilmar and Adani Total Gas also reported an increase in FPI shareholding to 0.77 per cent and 13.14 per cent from 0.65 per cent 13.06 per cent.

State-owned insurance behemoth LIC, which had come under lot of criticism for investing in Adani Group companies, reduced stake in Ambuja Cements and ACC to 5.69 per cent and 6.40 per cent from 6.29 per cent and 6.41 per cent in December quarter.

• Also read: LIC sees 59% jump in value of investments in Adani stocks

Despite reduction in holding, the value of LIC’s investment in 11 Adani Group companies has jumped 56 per cent to ₹61,210 crore as of March-end against ₹39,232 crore as of March, 2023.

Adani Enterprises reported that Rajiv Jain’s GQG Partners and mutual funds have increased their stake to 1.45 per cent and 1.71 per cent from 1.23 per cent and 1.49 per cent.

Incidentally, Jain was the first investor in the Adani group firms in the aftermath of Hindenburg report. The latest shareholding Patterns for Adani group firms suggest GQG also bought stakes in Adani Green Energy and Adani Energy Solutions.

COMMENT NOW