Adani Ports & SEZ, Ambuja Cements and Adani Enterprises were among a few Adani group stocks where domestic mutual funds trimmed stakes in the March quarter. The quarter was marked by a sharp volatility in Adani group shares following a research report by the US-based forensic short seller Hindenburg Research that accused the group of “brazen stock manipulation and accounting fraud for decades”.
The report sent Adani stocks tumbling and resulted in a notional loss of $62.6 billion in founder and CEO Gautam Adani's fortunes.
Data showed mutual funds cut stake in the Adani Ports by 134 basis points to 3.09 per cent or 6,67,29,749 shares at the end of March quarter from 4.43 per cent or 9,56,91,283 shares at the end of December quarter.
In Ambuja Cements, MF stake dropped 199 basis points to 5.80 per cent (11,49,97,421 shares) in the March quarter from 7.79 per cent (15,45,67,519 shares) sequentially. In the flagship Adani Enterprises, the MF stake dropped below 1 per cent to 0.87 per cent in the March quarter from 1.19 per cent in the December quarter.
In Adani Green Energy, MF stake was marginally reduced to 0.09 per cent from 0.12 per cent. Mutual funds' stake in Adani Total Gas and Adani Transmission remained insignificant. A few of the Adani group companies are yet to announce their quarterly shareholding patterns.
Since Hindenburg Research note on January 24, the total market capitalisation of the Adani group has fallen 51 per cent to Rs 9.38 crore compared with Rs 19.20 lakh crore as on January 24. The ports-to-power conglomerate is battling an investigation by the market regulator Sebi, which is looking into Hindenburg's allegations and the group’s related party dealings following a Supreme Court directive.
The group recently told investors that several top Japanese and European banks have reaffirmed confidence in the embattled conglomerate. "Global banks such as MUFG, SMBC, Mizuho, Standard Chartered, Barclays, DBank (Deutsche Bank), consortium lender banks have reaffirmed confidence in Adani group," said the document which stated its goal was to assuage investors, reported Reuters.
Hindenburg report had led Adani Enterprises to withdraw Rs 20,000-crore follow on public offer. The group took several measures later, including selling stakes in four group companies to the US-based GQG Partners for $1.87 billion or Rs 15,446 crore in a bid to reduce debt levels and allay investor concerns.
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