Since last week, investors have lost over $100 billion of market value in the Adani group after US short seller Hindenburg Research accused the company of using tax havens and flagged debt concerns in a report.
Adani group’s stocks have nosedived after the Hindenburg report’s release
Foreign institutional investors have been reducing their stakes in Group firms since well before the recent selloff started.
Foreign institutional investors (FIIs) have reduced their stakes in Adani Enterprises for seven consecutive quarters, from 20.51 percent in the March 2021 quarter to 15.39 percent in the three months ended December 2022. Similarly, FIIs pared their stake in Adani Green Energy for eight consecutive quarters, from 22.78 percent in the third quarter of 2020 to 15.14 percent.
Adani Ports and Special Economic Zone and Adani Power saw a decline in FII stakes for the second consecutive quarter. Adani Total Gas and Adani Transmission saw a reduction in FII stakes for five consecutive quarters, to 17.25 percent and 19.32 percent in Q3 2022 from 18.89 percent and 21.05 percent in Q2 2021, respectively. The FII stake in newly listed Adani Wilmar also fell for the second consecutive quarter.
The names of Apms Investment Fund and LTS Investment Fund are missing from the key shareholders’ list of Adani Enterprises and Adani Total Gas, respectively, as per BSE shareholding data.