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According to the most recent shareholding data for 7 out of 11 Adani Group entities, FPIs have increased their stakes in six companies – Adani Enterprises, Adani Ports, Adani Power, Adani Green Energy, Adani Wilmar, and Adani Total Gas.
Foreign portfolio investors and mutual funds have boosted their investments in Adani group companies, while the long-term investor LIC has profited from the two Group firms.
This surge in FPI holdings follows the Adani Supreme Court ruling in January, which dismissed the need for a separate investigation prompted by allegations made in a report by US short-seller Hindenburg Research against the Group.
Rahul Ghose, CEO of Hedged.in, noted that despite relatively high valuations, Adani Enterprises and Adani Ports remain attractive for investment due to their strong performance in terms of revenue and operating profit in recent quarters. He suggested considering these companies for long-term investment despite short-term market challenges and volatility.
FPIs Strengthen Positions in Adani Group, LIC Adjusts Holdings
In the March quarter, FPIs increased their stake in Adani Ports to 13.80 percent from 13.17 percent in December, while their holdings in Adani Power and Adani Green Energy rose to 15.91 percent and 16.33 percent, respectively, from 15.86 percent and 15.76 percent in the same period. Similarly, FPI holdings in Adani Enterprises increased to 11.45 percent from 11.12 percent. Adani Wilmar and Adani Total Gas also witnessed an uptick in FPI shareholding to 0.77 percent and 13.14 percent, respectively, from 0.65 percent and 13.06 percent.
On the other hand, state-owned insurance giant LIC, which faced criticism for its investments in Adani Group companies, reduced its stake in Ambuja Cements and ACC to 5.69 percent and 6.40 percent, respectively, from 6.29 percent and 6.41 percent in the December quarter. Despite the reduction, the value of LIC’s investments in the 11 Adani Group companies surged by 56 percent to ₹61,210 crore as of March-end compared to ₹39,232 crore in March 2023.
Adani Enterprises reported that Rajiv Jain’s GQG Partners and mutual funds increased their stakes to 1.45 percent and 1.71 percent, respectively, from 1.23 percent and 1.49 percent. Interestingly, following the Hindenburg report, Jain was among the first investors in the Adani Group firms. The latest shareholding patterns for Adani Group firms indicate that GQG acquired stakes in Adani Green Energy and Adani Energy Solutions.
The Confidence-Inspiring FPIs
After the Adani Supreme Court decision, foreign portfolio investors (FPIs) quickly showed their faith in the Adani Group’s resiliency and future prospects. The spike in foreign portfolio investments (FPIs) in Adani Group firms after the claims made by Hindenburg were dismissed shows the strong conviction among investors in the conglomerate’s long-term development potential.
Adani Enterprises, Adani Ports, Adani Power, Adani Green Energy, Adani Wilmar, and Adani Total Gas are among the critical Adani Group firms in which foreign portfolio investors (FPIs) have substantially boosted their holdings, according to the most recent sharing statistics. The attraction of Adani Group enterprises as investment prospects is evident from the flood of funds from FPIs. This is especially true after the Supreme Court cleared the air of charges in 22 out of the 24 accusations.
Rahul Ghose’s Point of View: Highlighting Future Possibilities
Ghose highlights the long-run potential of Adani Enterprises and Adani Ports despite worries about valuations and short-term market volatility. He bases this assertion on the companies’ strong sales and operating profit performance in recent quarters.
Given the transient nature of market movements, Ghose argues that investors should take a strategic, long-term view when making investment decisions. By concentrating on the core competencies and future prospects of the firms that make up the conglomerate, investors may seize the possibilities offered by the Adani Group’s diverse business portfolio.
The Role of State-Owned LIC in the Face of Transformation
Life Insurance Corporation of India (LIC), an Indian state-owned insurance giant, has also been an influential investor in the Adani Group’s holdings. However, when criticism of the conglomerate’s investments mounted, LIC decided to cut its links to companies like Ambuja Cements and ACC.
Even though LIC’s shares were reduced, the value of its investments in Adani Group firms rose significantly. This reflects the conglomerate’s favourable attitude after the Adani Supreme Court judgment. In times of change and uncertainty, LIC’s strategic manoeuvring highlights the significance of flexibility and cautious risk management.
Final Thoughts
Finally, the latest news about the Adani Group shows how the investment environment is constantly changing. Foreign portfolio investors (FPIs) boosted their holdings in Adani Group firms after the Supreme Court dismissed the accusations against the company, which sparked fresh investor confidence.
With the dust settling and a new chapter beginning for the Adani Group, investors have a great chance to profit from the conglomerate’s strength and future development prospects. Investors in India’s ever-changing business scene may better prepare themselves for the future by taking a proactive, future-oriented approach to investing decisions.
