FPIs Cut Stakes in Adani Group, Retail Investors Stay Firm

In the third quarter of 2024, Foreign Portfolio Investors (FPIs) sold off a portion of their stakes in several Adani group companies, contributing to a sharp decline in share prices since November’s US Department of Justice notice. However, retail investors and mutual funds largely maintained their stock positions.

FPIs Reduce Stakes in Key Adani Stocks

According to reports, FPIs reduced their holdings in 4 major Adani group stocks:

• Adani Green Energy Ltd: FPIs cut their stake by 148 basis points to 13.68% from 15.16%.
• Ambuja Cements Ltd: Their stake fell by 1.47 percentage points to 9.14% from 10.61%.
• Adani Energy Solutions Ltd: They decreased their stake by 132 basis points to 17.34% from 18.66%.
• Adani Ports and SEZ Ltd: FPIs reduced their exposure by 128 basis points to 13.93% from 15.21%.

Retail Investors and Mutual Funds

While FPIs sold off their Adani holdings, retail investors increased their positions by 4-120 basis points across the Adani group stocks. Mutual funds largely held their ground, with only ACC Ltd seeing a slight decrease in their holdings.

Impact of November’s Selloff

The Adani group faced a major hit in November after reports emerged that Gautam Adani was accused of being involved in a $250 million bribery scheme tied to solar power contracts. However, the group clarified that neither Gautam Adani nor other executives were charged with violating US laws.

Recent Developments

Despite the challenges, Adani Green Energy decided to cancel its dollar bond offering. The group is also exiting its joint venture with Adani Wilmar in a strategic move to raise additional funds and manage its debt.

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