Mutual Funds Buy Rs 4,200 Crore of Adani Stocks in August Amidst Growing Interest
Mutual funds increased their investments in Adani Group companies in August 2024, with a net buying of over Rs 4,200 crore. This marks a significant rise compared to previous months and reflects the growing confidence of mutual funds in the Adani conglomerate. In July, mutual fund investments in Adani stocks amounted to Rs 2,000 crore, while in June and May, they were Rs 990 crore and Rs 880 crore, respectively.
Major Investments in Adani Energy Solutions and Ambuja Cement
Adani Energy Solutions and Ambuja Cement attracted the highest investments from mutual funds in August. Adani Energy Solutions saw an inflow of Rs 1,541 crore, driven by a $1 billion Qualified Institutional Placement (QIP). Meanwhile, Ambuja Cement received Rs 1,308 crore in investments, boosted by a Rs 4,250 crore block deal.
Other Adani Group companies also saw substantial investments during the month. Adani Enterprises received Rs 924 crore, Adani Ports & SEZ saw Rs 588 crore, and Adani Power attracted Rs 44 crore. Adani Green Energy and Adani Total Gas saw smaller inflows of Rs 11 crore and Rs 4.17 crore, respectively. However, ACC faced a net outflow of Rs 201 crore during the same period.
Fund Houses Leading the Charge
Several leading mutual fund houses contributed to the surge in Adani stock investments. SBI Mutual Fund led the charge, investing Rs 740 crore in Adani Energy Solutions. Tata Mutual Fund and HDFC Mutual Fund followed with Rs 237 crore and Rs 202 crore, respectively. Other notable participants included Bandhan Mutual Fund, Helios Mutual Fund, Axis Mutual Fund, and Whiteoak Mutual Fund, each investing between Rs 10 crore and Rs 60 crore.
For Ambuja Cement, Invesco Mutual Fund was the top buyer, investing Rs 231 crore. Mirae Asset Mutual Fund and ICICI Prudential Mutual Fund followed with Rs 193 crore and Rs 97 crore, respectively. Kotak Mutual Fund, Tata Mutual Fund, Baroda BNP Paribas Mutual Fund, Edelweiss AMC, and SBI Mutual Fund also made notable investments in the range of Rs 10 crore to Rs 60 crore each.
In Adani Enterprises, Invesco Mutual Fund once again led with a Rs 319 crore investment, followed by Aditya Birla Sun Life Mutual Fund with Rs 132 crore and Kotak Mahindra Mutual Fund with Rs 65 crore. SBI Mutual Fund was the largest buyer in Adani Ports & SEZ, investing Rs 261 crore, followed by Kotak Mutual Fund and ICICI Prudential Mutual Fund, which invested Rs 129 crore and Rs 100 crore, respectively.
Rising Confidence in Adani Group
The consistent rise in mutual fund investments in Adani Group companies reflects the growing confidence of asset management companies. This is a notable shift, as many mutual funds had previously stayed away from Adani stocks, even when there was a sharp increase in the share prices of its listed entities.
This growing interest from mutual funds comes amidst Adani Group’s efforts to strengthen its business across various sectors, including energy, infrastructure, and cement. As the group continues to expand and diversify, mutual funds are taking a more active role in their investments in Adani stocks, contributing to the steady rise in inflows.
Conclusion
In August, mutual funds invested Rs 4,200 crore in Adani stocks, with significant inflows into Adani Energy Solutions and Ambuja Cement. Other Adani companies like Adani Enterprises, Adani Ports, and Adani Power also saw investments from leading mutual fund houses. As mutual fund interest in Adani Group companies continues to rise, this trend is likely to shape the future of both the conglomerate and the Indian stock market.
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