Mutual funds invested over Rs 2,000 crore in Adani Group companies in July, with eight of the listed companies of the diversified conglomerate witnessing net buying while Ambuja Cement faced minor selling.
More importantly, the quantum of mutual fund buying has been consistently rising over the past few months. In June, the group saw Rs 990 crore net buying from mutual funds, which was higher than in May when the buying was pegged at Rs 880 crore.
Meanwhile, the total value of mutual fund holding in the nine group firms stood at Rs 42,154 crore in July, as against Rs 39,227 crore in June.
Further, the surge in mutual fund interest followed significant promoter stake purchases in Adani Group companies during the June quarter. Promoters acquired shares worth Rs 23,000 crore, which analysts viewed as a positive indicator.
Adani Ports & SEZ led the pack with mutual funds buying shares worth over Rs 1,100 crore, followed by Adani Enterprises at Rs 890 crore, and Adani Power at Rs 218 crore.
Other companies, including ACC Ltd, Adani Energy Solutions, Adani Green Energy, Adani Total Gas, and Adani Wilmar Ltd, saw mutual fund buying ranging from Rs 1 crore to Rs 88 crore. Meanwhile, Ambuja Cements experienced selling worth Rs 338 crore.
In Adani Ports & SEZ, SBI MF was the top buyer, acquiring shares worth Rs 854 crore, followed by Kotak MF (Rs 188 crore) and UTI MF (Rs 152 crore). ICICI Prudential, HDFC, and Nippon MF also made significant purchases.
For Adani Enterprises, Invesco MF led with Rs 378 crore in purchases, followed by SBI MF (Rs 266 crore) and Quant MF (Rs 111 crore). In Adani Power, Tata MF was the largest buyer with Rs 223 crore, followed by Quant MF with Rs 77 crore.
This mutual fund buying occurred despite many of these asset management companies previously being overlooked by mutual funds, even after significant stock price surges.
In January, India’s Supreme Court ruled that the Adani Group would face no further probes beyond SEBI’s ongoing investigation into tax haven use and stock manipulation, bringing relief to the conglomerate. This followed allegations by Hindenburg Research of stock manipulation and fraud ahead of Adani Enterprises' Rs 20,000 crore FPO, which was ultimately shelved.
In July, SEBI issued show cause notices to Hindenburg Research, Mark Kingdon, and others for allegedly colluding to use non-public information to short Adani stocks, causing a major market disruption.
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