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A sparkling show on bourses by Adani Group firms has failed to generate an equal quantum of interest from foreign investors.
When it comes to putting additional money on billionaire Gautam Adani’s sunrise story, FIIs have preferred Adani Ports and Special Economic Zone (APSEZ) over other two group companies — Adani Power and Adani Enterprises.
In the past one year, FII holding in APSEZ has increased substantially by over 3 percentage points to 18.12 per cent by the end of June 2014, from 15.08 per cent in the year-ago period. Adani Power has witnessed fluctuating investment trends during the same period.
FII holding in Adani Power rose marginally to 7.58 per cent from 7.28 per cent. It has seen FII holding falling by 0.02 per cent during the period.
APSEZ, FIIs pet“Among the group companies, there is optimism only about APSEZ.
“The business proposition is promising and the valuation of the stock is also good. It has become FIIs’ favourite stock,” said S Ranganathan, Head of Research, LKP Shares.
According to Alex Mathews, Head -Research, Geojit BNP Paribas Financial Services, the increase in FII holding in APSEZ was a stock-specific call taken by the foreign investors, which would not reflect in the other Adani Group companies. However, domestic institutional investors (DIIs), including mutual funds, and retail investors have cut their holding in APSEZ during the past one year. Also, other Adani group firms have seen DII holding falling marginally.
Retail investors cut exposureInterestingly, retail investors have reduced their holding in APSEZ significantly. The retail investors’ (holding shares worth ₹1 lakh shares or less) stake fell to 1.97 per cent from 2.99 per cent during the period.
“The stock had appreciated well during elections. Therefore, retail investors are now booking profit and exiting at this level,” said Mathews.
“The financial performance and operational growth of APSEZ stock is reflected in the increased FII holding. Investors’ appetite for the infra stocks has increased and APSEZ is a good asset player in the entire sector,” said an analyst with a Mumbai-based international brokerage firm.
Market insiders believe that with India’s port story being led by the Adani Group, APSEZ has further upside, and, hence, remains attractive for overseas investors.
On Tuesday, APSEZ’ scrip shed 0.78 per cent to ₹310.63, while the stock of Adani Power lost 0.58 per cent to ₹60.
The Adani Enterprises scrip also closed down, 0.66 per cent, at ₹446.85 on BSE.
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