Adani Group stocks tumbled on November 26, 2024, after Fitch Ratings put some group bonds on negative watch. This follows accusations by US authorities of a $265 million bribery scheme to secure renewable energy contracts, implicating Gautam Adani, Sagar Adani, and associates.
Ripple Effects of the Bribery Allegations
The fallout of these accusations is evident worldwide:
- Kenya: President William Ruto cancelled a multibillion-dollar airport modernization deal with Adani.
- France: Total Energies halted fresh investments in Adani-linked projects pending clarity.
- India: The Andhra Pradesh government is reconsidering an Adani-linked power supply deal.
- Fitch Ratings: Placed Adani bonds on negative watch, raising concerns for investors.
Impact on Mutual Funds
Several mutual funds have substantial holdings in Adani Group stocks. These include Adani Ports, Adani Power, Adani Energy Solutions, Adani Enterprises, and their cement subsidiaries like ACC and Ambuja.
Mutual Funds Having Highest Exposure to Adani Group Stocks
| Mutual Fund Scheme Name | Company Name | Holding % of AUM | Market Value Rs in Cr | Fund Manager |
| SBI Focused Equity Fund | Adani Ports and SEZ Ltd. | 3.03 | 1059.69 | R. Srinivasan |
| Quant ELSS Tax Saver Fund | Adani Power Ltd. | 7.6 | 834.45 | Ankit Pande |
| Quant Small Cap Fund | Adani Enterprises Ltd. | 2.76 | 726.73 | Ankit Pande |
| Quant Flexi Cap Fund | Adani Power Ltd. | 5.92 | 444.81 | Ankit Pande |
| Quant Active Fund | Adani Power Ltd. | 3.37 | 354.88 | Ankit Pande |
Data as of October 31, 2024.
What This Means for Investors
Mutual fund investors should carefully evaluate their portfolios. While Adani Group stocks have been high-growth in the past, ongoing allegations could lead to price volatility, regulatory action, and downgraded ratings, impacting fund performance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
