FPIs, MFs take contrarian view on Adani Group stocks; FPIs trim stake as MFs up positions

Adani Group

Foreign investors significantly reduced their positions in Adani Group companies during the December quarter, offloading shares worth around Rs 7,900 crore. Meanwhile, mutual funds capitalised on the opportunity to increase their stakes at a time when foreign investors were diluting their stake.

Incidentally, Rajiv Jain’s GQG Partners, a key investor in Adani Group firms, kept its holdings largely stable during the quarter, as per data from the latest shareholding pattern of the listed entities.

Adani Ports & SEZ witnessed a sharp reduction in foreign holdings, dropping to 13.9 percent from 15.2 percent, with the quantum of sales amounting to Rs 3,388 crore. Similarly, Adani Green Energy saw FPIs reducing their stake to 13.7 percent from the earlier 15.2 percent – the sale value was pegged at Rs 2,430 crore.

The value of the share sale has been calculated based on the average share price during the quarter. Further, the identities of FPIs who exited could not be ascertained as regulations stipulate that the names need not be disclosed for shareholders who hold less than one percent stake in the company.

Meanwhile, Adani Energy Solutions saw the FPI stake dipping to 17.3 percent from 18.7 percent, worth Rs 1,280 crore. Ambuja Cement also saw 150 basis points (bps) cut in FPI stake valued at Rs 1940 crore.

Notably, FPIs increased their stake in Adani Enterprises to 11.7 percent, valued at Rs 1,645 crore. While Adani Power saw a marginal drop in the FPI stake, Adani Wilmar registered a small increase.

Interestingly, mutual funds (MFs) capitalised on the opportunity to increase their stakes at a time when foreign investors were mostly selling. Adani Ports saw a 100 bps rise in mutual fund holdings, followed by Adani Energy Solutions (57 bps), Adani Green Energy (28 bps), Adani Enterprises (18 bps), and Adani Power (9 bps).

Meanwhile, GQG Partners raised its stake in Adani Enterprises, buying shares worth Rs 589 crore and in Adani Energy Solutions by Rs 389 crore. However, it trimmed its holdings in Adani Ports, Adani Green Energy, Ambuja Cement and Adani Power by Rs 253 crore, Rs 12 crore, Rs 745 crore and Rs 45 crore, respectively.

The recent past also saw Adani Group embarking on fund raising, including a $1 billion Qualified Institutional Placement (QIP) by Adani Energy Solutions in August 2024 and a $500 million share sale by Adani Enterprises in October 2024 to fund new energy projects and reduce debt.

The group also plans to raise at least $1.5 billion via dollar bond issuances under Adani Green Energy and Adani Energy Solutions by early 2025, focusing primarily on refinancing existing debt.