Global funds buy over $6 bn in Adani group stocks in 2023

Adani group stocks have attracted portfolio investments of over ₹52,000 crore (over $6 billion) in 2023 from global strategic investors, retirement, and insurance funds, a third of net foreign portfolio inflows into Indian equities this calendar year so far.

According to data sourced from Prime Database, investors acquired stakes in group firms for an amount of ₹52,570 crore during the period March to October.

  • Also read: Adani group spends $2.5 bn so far on green hydrogen value chain

Most of the transactions were done through the bulk and block deal windows of the exchanges.

Rajiv Jain-led GQG Partners, a boutique investment firm, is one of the largest investors in the group with investments worth over $4 billion. Jain came to billionaire Gautam Adani’s rescue in the aftermath of Hindenburg Research’s explosive allegations of price manipulation and other corporate governance lapses in the group that wiped out over $130 billion in market capitalisation.

  • Also read: In 2023, Adani spent $6-7 billion to consolidate holding in group companies

Jain acquired small but significant stakes in key group firms from the promoter group. This not only allowed Adani to pay down share-backed loans but also infused confidence among global investors who were holding bonds issued by Adani group firms. Since then, he has also acquired stakes in the companies through market purchases as well as block deals.

There are other long-term global investors in the group. Abu Dhabi Investment Authority has acquired a stake in three companies – Adani Energy Solutions, Adani Ports and Special Economic Zone, and Adani Power.

Qatar Investment Authority acquired a 2.69 per cent stake in Adani Green Energy for $470 million in August. That is now worth about $785 million.

  • Also read: Adani group market cap sees highest weekly rise at ₹3.15 lakh crore

Longer-term retirement funds have also placed their confidence in the group.

Australia’s superannuation funds such as AustralianSuper and CareSuper have invested in Adani Energy Solutions in March and June.

Employees Retirement System of Texas, Saudia Arabia’s General Organisation for Social Insurance, New York State Common Retirement Fund, Washington State Investment Board, BT Pension Scheme, and Delaware Public Employees Retirement System, among others, have investyed in the group.

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