Despite recovery in Adani group stocks, mutual funds stay away from group shares!

Adani Group Stocks: After the huge fall in the shares of Adani Group after the Hindenburg Research report, all the stocks of the group are trying to recover from the lower levels. But mutual fund houses have not stopped selling their stake in the listed companies of the group. Mutual funds have invested only 0.9 per cent in Adani Group stocks till March 2023 out of their total assets of $182 billion.

According to Bloomberg data, at the end of the third quarter of 2022-23 on December 31, mutual funds had 2 per cent shares of the group, which has now come down to 0.9 per cent. After the Hindenburg report, there was a decline of $ 153 billion in the market cap of Adani Group’s stocks. The Adani group rejected Hindenburg’s report. Since the report came out, the capital expenditure of the Adani group has had to be cut. So the loan has to be repaid in exchange for the promoter’s share of the company so that the trust of the investors can be won.

Mutual funds where very cautious about investing in listed companies of Adani group. But the group has raised a total of Rs 15,446 crore by selling shares of four companies in a block deal. The company has bought these shares from American private equity firm GQG Partners’ Rajeev Jain. The group’s four subsidiary companies Adani Ports and Special Economic Zone Limited, Adani Green Energy, Adani Transmission and Adani Enterprises have sold shares worth Rs 15446 crore to GQG Partners in a block deal. After buying the stake of GQG Partners, Adani Group’s market cap has seen a jump of $ 30 billion. Retail investors have bought shares of Adani Group despite the crisis. According to the data, retail investors have increased their stake in 8 out of 10 Adani companies listed on the stock exchange in the fourth quarter of FY 2022-23.

Where Indian Mutual Funds have kept distance from the shares of Adani Group. According to data from Nuwama Wealth Management, Mirae Investment Managers and HSBC Asset Management have invested in group companies in the month of March. Both the financial institutions have bought 7 lakh shares of the two companies of the group.

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