MFs cautious but Adani Enterprises, Ambuja Cements, 2 other Adani group shares rally in March

Mutual funds as an institutional investor category had cut stakes in four Adani group shares in February namely Adani Enterprises, Adani Total Gas, Adani Ports & SEZ (Adani Ports) and Ambuja Cements, but the four stocks delivered up to 33 per cent returns in March so far.

In the case of flagship Adani Enterprises, the MF holding had fallen below 1 per cent in February. It stood at 0.88 per cent in the month gone by against 1.02 per cent in January. Data showed the scrip has risen 32.33 per cent in March so far.

Adani Ports and Ambuja Cements were two Adani group companies, where domestic fund houses cut stakes by more than 100 basis points in February. Adani Ports is up 12.51 per cent in March so far while Ambuja Cements has risen 7 per cent during the same period.

Mutual funds had reduced holding in Adani Ports to 3.46 per cent in February from 4.80 per cent in January. Funds held 7,48,26,083 shares in Adani Ports in February against 10,37,30,269 shares in January. They reduced stake in Ambuja Cements to 6.05 per cent from 7.43 per cent a month ago.

Adani Total Gas saw MFs reducing stakes to 14,01,990 shares or 0.13 per cent in February from 14,97,398 shares or 0.14 per cent. This scrip is up 26 per cent in March so far.

Adani stocks have been rising in March, as the Adani group took steps to allay investor concerns over its debt. There have been reports that Adani group is engaged in exploratory talks with potential overseas investors, such as global insurance firms, to privately place longer-tenor bonds of up to 30-year maturities.

The group recently sold Rs 15,446 crore worth of shares in four of its companies to US-based GQG Partners and later suggested that it prepaid share-backed financing of Rs 7,374 crore ($901.16 million) to various international banks and Indian financial institutions. The group also held roadshows in Dubai, London, Hong Kong and Singapore, among others.

Besides, it recently cancelled a Rs 7,017 crore coal plant purchase and shelved plans to bid for a stake in power trader PTC India and went slow on a Rs 34,900 crore petrochemical project in Gujarat’s Mundra.

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