Indian money managers continue to trim holdings of Adani Group's stocks

Investments by local equity mutual funds in the group accounted for only 0.9% of the industry's $182 billion in assets at the end of March

Photo: Bloomberg

Photo: Bloomberg

Listen to This Article

By Chiranjivi Chakraborty and Ashutosh Joshi
Money managers in India have continued to trim holdings of Adani Group’s stocks, suggesting concerns about governance remain even as the worst of the rout seems to have passed.  
Investments by local equity mutual funds in the group accounted for only 0.9% of the industry’s $182 billion in assets at the end of March, according to data compiled by Bloomberg. That’s down from nearly 2% as of Dec. 31.
The embattled conglomerate at one point saw $153 billion erased from its market value in the selloff following the release of Hindenburg Research’s scathing report on Jan. 24. The group has vehemently denied allegations made by the short-seller, and has since trimmed down capital spending for growth and said that its founders have paid back share-backed loans.


Also Read

Mutual funds see muted growth in 2022, expect better days in new year

Equity mutual funds' net inflow drops 76% to Rs 2,258 cr in November

Mutual fund growth reverses to mean after 2021 sprint, shows data

BS jury picks best mutual fund managers in the debt and equity category

MF inflow in equities crosses Rs 1.5-trn for second straight fiscal

Mastek surges 11% on strong March quarter results

O2C segment may drive RIL's Q4FY23 revenue; retail, telco stable: Analysts

Analysts see more upside in consumer appliance stocks as temperatures soar

Emkay Global zooms 20% on Sebi's in-principle nod to enter MF business

ITC m-cap hits Rs 5-trn for the first time; stock surges 21% so far in CY23

Local managers’ continued caution is at odds with the optimism shown by GQG Partners’ star investor Rajiv Jain, who spent nearly $2 billion to scoop up stakes in four Adani stocks in early March. The move acted as a catalyst for a rebound of more than $30 billion in the group’s market value.

While Indian funds’ overall exposure has dropped, some players such as Mirae Asset Investment Managers Pvt. and HSBC Asset Management India Pvt. were buyers in March. However, shares purchased by them in two group entities totaled less than 700,000, according to data from Nuvama Wealth Management Ltd.

A historical analysis by Bloomberg Intelligence in 2021 showed that local fund managers have had smaller holdings in companies that reported governance issues than overseas and individual investors.

First Published: Apr 20 2023 | 10:06 AM IST

Explore News