Retail Investors Pile Into Adani Group Stocks In March Quarter
Adani Enterprises led with a threefold jump in the number of retail shareholders.
Retail investors lapped up shares of Adani Group companies in the quarter ended March as the conglomerate's stocks fell following a report by short seller Hindenburg Research.
Adani Enterprises Ltd. led with a threefold jump in the number of retail shareholders, according to exchange disclosures. The retail base more than doubled for Adani Total Gas Ltd. and Adani Transmission Ltd.
The category includes individuals holding nominal share capital of up to Rs 2 lakh.
All 10 group companies saw the total shareholder base grow at the fastest pace ever. To be sure, many of the Adani Group shareholders are likely to be common among group firms as these were spun off from Adani Enterprises.
The total shareholder base also surged threefold for Adani Enterprises, and more than doubled for Adani Total Gas and Adani Transmission.
Foreign portfolio holdings rose in four Adani Group companies—Adani Enterprises, Adani Ports and Special Economic Zone Ltd., Adani Green Energy Ltd. and Adani Transmission—following stake sales by the promoters to GQG Partners. The U.S.-based firm invested $1.87 billion, or about Rs 15,446 crore, in the companies last month.
Shares of Adani Group companies traded at high valuations till early this year. The steep correction following the Hindenburg Research report in January has prompted retail investors to buy group stocks.
The combined market capitalisation of 10 Adani Group stocks has surged nearly 40% since Feb. 27, following investor roadshows in Singapore and Hong Kong. The gains were led by Adani Enterprises, Adani Green Energy and Adani Transmission.
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