How Mutual Funds Positioned Themselves In Adani Group Shares in February

Mutual funds reduced their positions in Adani Ports, Adani Enterprises, Adani Total Gas and Ambuja Cements in the month of February, newspaper Mint reported quoting mutual fund monthly data analysed by brokerage firm ICICIDirect.

Vedanta, Tata Power, Bank of Baroda and UPL were some other prominent shares in which mutual funds sold their stakes in February. On the other hand, mutual funds bought shares in GAIL Tata Motors, Macrotech Developers, Tech Mahindra and Hindustan Zinc.

Adani Group stocks underwent a massive selloff starting January after Hindenburg report levelled allegations of fraud, stock price manipulation and improper use of tax havens. The allegations were dismissed as by Adani group in 413 page report.

In the selloff that ensued after the Hindenburg report as much as Rs 12 lakh crore was wiped out from Adani Group companies market capitalisation. Meanwhile, the selling pressure has abated in Adani companies after Adani Group prepaid share-backed loans worth $2.15 billion in a move to gain investors’ confidence.

Earlier this month, Adani Group sold minority stakes in four of the conglomerate's listed companies to American equity investment boutique GQG Partners for Rs 15,446 crore. In a statement, Adani group said shares in Adani Ports and Special Economic Zone Ltd (APSEZ), Adani Green Energy Ltd (AGEL), Adani Transmission Ltd (ATL) and Adani Enterprises Ltd (AEL) were sold through secondary market block deals.

"The investment has made GQG a key investor in the development and growth of critical Indian infrastructure," it said. In a separate development, reports suggest that Gautam Adani is planning to sell stake in recently acquired cement company Ambuja Cement for $450 million with an aim to pare debt.