Adani Group’s stocks: Fund managers continue to trim holdings

Money managers in India continued to reduce holdings of Adani Group shares, suggesting continued concerns about governance even as the worst of it passes.

is reading: Retail investors ignored the Hindenburg Report, and bought shares of the Adani Group

The group’s domestic equity mutual fund investments accounted for just 0.9 percent of the industry’s $182 billion in assets at the end of March, according to data compiled by Bloomberg. That’s down from about 2 percent as of December 31.

The beleaguered conglomerate at one point saw $153 billion erased from its market value in sell-offs after issuance The scathing Hindenburg Research Report On January 24th. The group has adamantly denied the short-selling company’s allegations, and has since cut capital spending in order to grow and said its founders had paid off equity-backed loans.

The constant caution of local managers contradicted The optimism expressed by Rajeev Jain, senior investor at GQG Partners, who spent nearly $2 billion acquiring stakes in four shares of Adani in early March. The move was the catalyst for a recovery of more than $30 billion in the group’s market capitalization.

While the overall exposure to Indian funds has decreased, some players such as Mirae Asset Investment Managers Pvt. and HSBC Asset Management India Pvt. They were buyers in March. However, the total shares bought by them in two collective entities is less than 700,000, according to data from Nuvama Wealth Management Ltd.

A historical analysis by Bloomberg Intelligence in 2021 showed that domestic fund managers have smaller stakes in companies that have reported governance problems than foreign and retail investors.