New Delhi: In a major shift among foreign investors regarding their investments in India’s largest conglomerates, the prominent investment management firm Capital Group has increased its exposure to Adani Group companies while decreasing holdings in Reliance Industries Ltd (RIL), according to a new report.
According to a Bloomberg report, citing people familiar with the matter, the US-based firm has acquired stakes worth over $2 billion across three Adani Group companies — Adani Ports, Adani Power and Adani Green Energy.
“On May 5, Capital Group bought nearly a 2 per cent stake in Adani Ports and Special Economic Zone Ltd. for 74.86 billion rupees ($776 million) through open-market transactions, according to BSE block-deal data,” the report mentioned.
Neither Capital Group nor Adani Group immediately commented on the report. A Capital Group spokesperson was quoted as saying in the report that “she’s unable to comment on individual stocks or shareholdings”.
According to the report, the “pivot toward Adani stocks in particular” signals a recovery in investor confidence after months of regulatory scrutiny and market volatility.
The US decision to drop charges against Adani Enterprises Ltd has been billed as a ‘huge victory’ for the Adani Group and a positive development for the industry and the country. Experts have said that this is expected to strengthen investor confidence while paving the way for the conglomerate to continue raising global capital.
Meanwhile, Capital Group’s exposure to Reliance has “declined sharply over the past several years”, said the Bloomberg report.
The report claimed that Capital Group held about 142 million shares in Reliance Industries at the end, “compared with about 500 million six years earlier and a peak of 755 million in March 2017, according to data compiled by Bloomberg”.
Reliance Industries shares have declined 8.36 per cent over one year, according to the report.
(IANS)
