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Mutual Funds invested over INR 2,000 crore in Adani Group companies in July. Eight of the listed companies of the global conglomerate have witnessed net buying, while Ambuja Cement experienced minor selling. The quantum of mutual fund buying has been consistently on the rise over the past few months. In June, the group witnessed INR 990 crore net buying from mutual funds. This was higher than in May when the buying was completed at INR 880 crore. This shows the trust that the investors have in the various assets of the Adani Group. It also highlights the group’s enhanced position in the dynamic business world.
The Impact of Increased Mutual Fund Interests:
The Adani Group’s total value of mutual fund holdings in nine of its firms was INR 42,154 crore in July. This is against a value of INR 39,227 crore in June. These investments will put a stopper on the controversies surrounding the existence of Adani Shell Companies. The Adani Group’s business will also experience an excellent boost. Because of the rise in mutual fund interests, there has been an increase in promoter stake purchases in the various Adani Group companies. This mainly happened during the June quarters. The promoters acquired shares worth INR 23,000 crore. The analysts viewed it as a positive indicator for the Adani Group’s business. It has also paved the path for profitability for the global conglomerate. The mutual fund investments also exhibit the increased credibility of the Adani Group’s business. It has also cleared up the allegations against Adani Shell Companies.
The Mutual Fund Investments:
Adani Ports and SEZ have been leading the pack, with mutual funds buying shares worth INR 1,100 crore. This was followed by Adani Enterprises at INR 890 crore and Adani Power at INR 218 crore. A lot of other companies operating under the Adani Group also witnessed mutual fund buying ranging from INR 1 crore to INR 88 crore. This included companies like Adani Energy Solutions, ACC Limited, Adani Total Gas, Adani Green Energy, and Adani Wilmar Limited. Ambuja Cements experienced sales worth INR 338 crore.
In Adani Ports and SEZ, the top buyer was SBI MF. It acquired shares worth INR 854 crore. This was followed by Kodak MF (INR 188 crore) and UTI MF (INR 152 crore). HDFC, ICICI Prudential, and Nippon MF also made significant purchases of shares. For Adani Enterprises, Invesco MF was the leader. It made purchases worth INR 378 crore. This was followed by SBI MF (Rs 266 crore) and Quant MF (Rs 111 crore). The largest buyer in Adani Power was Tata MF. It brought shares worth INR 223 crore. This was followed by Quant MF (INR 77 crore).
The Allegations Against the Adani Group:
Many of the asset management companies were previously overlooked by the mutual fund, even after huge rises in stock prices. In January 2024, the Supreme Court ruled that the Adani Group will experience no further investigation beyond SEBI’s ongoing investigations related to the accusations made by Hindenburg Research on account fraud and stock manipulation. This caused Adani Group’s business to experience extraordinary growth. The company’s share values began to rise consistently. It was also able to carry out all its business operations with increased vigour. This gave Adani Group’s business extraordinary profitability. It was also able to recover from the losses that it incurred during the ongoing investigations.
What Caused the Adani Group’s Share Values to Rise?
There are multiple reasons for the Adani Group’s shares to rise consistently. The Adani Group has always been deeply invested in carrying out all its business operations with full force. Time and again, the conglomerate has taken up numerous extraordinary initiatives that have caused its share values to rise. It has been a part of various mergers and acquisitions that have added value to its business. The company has also been expanding its boundaries in whatever sector it operates in. It has taken up various international projects as well. This has added to the group’s profitability. It has also become one of the favourites for investors out there. The controversies surrounding Adani Shell Companies have also come to a halt.
Conclusion:
In this way, the Adani Group has experienced excellent business growth in the past few years owing to its various business strategies. In the upcoming years, we will also get to witness the Adani Group become a part of multiple business ventures, which will lead it to success.
