The intensified selloff in Adani group shares since November's US Department of Justice notice was partially led by foreign portfolio investor (FPI) selling. Mutual funds bought several Adani scrips while retail investors largely stayed put on Adani counters during the quarter, data compiled from corporate database AceEquity suggests.
Overseas investors sold over 100 basis points stakes in four Adani group stocks namely Adani Green Energy Ltd, Ambuja Cements Ltd, Adani Energy Solutions Ltd and Adani Ports and Special Economic Zone Ltd.
FPIs cut exposure to Adani Green Energy Ltd by 148 basis points to 13.68 per cent in Q3 from 15.16 per cent in Q2. Ambuja Cements Ltd saw the institutional class selling 1.47 percentage points stake to 9.14 per cent in the December quarter from 10.61 per cent in the September quarter.
In Adani Energy Solutions, they reduced stake by 132 basis points to 17.34 per cent from 18.66 per cent. Adani Ports also saw FPIs cutting stake by 128 basis points to 13.93 per cent from 1.28 per cent. ACC Ltd and Adani Power Ltd were two other Adani group names where FPIs trimmed exposure. A total of nine of 11 Adani group companies have reported shareholding patterns so far.
Retail holding in the above stocks rose 4-120 basis points during the period. Except for ACC Ltd (down 14 basis points), MFs also remained put on Adani group stocks. Meanwhile, FPIs were seen raising stake in Sanghi Industries Ltd, Adani Enterprises Ltd and Adani Wilmar Ltd by up to 52 basis points. MFs and retail holding stayed largely unchanged.
MF holding in Ambuja Cements Ltd (up 136 bps to 7.71 per cent), Adani Ports (up 104 bps to 5.06 per cent), Adani Energy Solutions Ltd (up 57 bps to 1.91 per cent), Adani Green Energy Ltd (up 28 bps to 0.37 per cent) rose during this period. Adani Enterprises Ltd, Adani Power Ltd and New Delhi Television Ltd also saw marginal rise in MF exposure in Adani group firms.
Adani stocks took a beating in November following reports that Gautam Adani was charged by US prosecutors for allegedly being part of a scheme to pay over $250 million or about Rs 2,100 crore in bribes to Indian officials in exchange of favourable terms for solar power contracts.
Adani group later clarified that Gautam Adani, Sagar Adani and Vneet Jaain were not charged with any violation of the FCPA in the counts set forth in the indictment or civil complaint of the US Securities and Exchange Commission (SEC).
Adani Green Energy, however, decided not to go ahead with its dollar bond offering. More recently, the Adani group decided to exit Adani-Wilmar joint venture in a strategic stake sale, the proceeds of which could be leveraged for two times debt and enable Adani Enterprises to raise additional debt of Rs 35,000–36,000 crore, creating a formidable Rs 50,000– 52,000 crore corpus, Ventura said recently.
Sanghi Industries Ltd (down 62 per cent), Adani Green Energy Ltd (down 54 per cent), New Delhi Television Ltd (down 49 per cent), Adani Total Gas Ltd (down 44 per cent) and Adani Energy Solutions Ltd (down 43 per cent) are some of the stocks that are off up to 62 per cent from their 52-week high levels. Adani Power Ltd, Adani Enterprises Ltd, Adani Wilmar Ltd are down 35-40 per cent during the same period.