As of October 31, 2024, Indian mutual funds collectively held investments worth ₹43,455 crore in 10 listed Adani Group companies. The Adani Group has been under scrutiny following allegations of a multibillion-dollar bribery scheme involving its chairman Gautam Adani. The charges have led to a massive sell-off, eroding ₹2.2 lakh crore in market capitalization across the group’s listed entities on November 21.
Mutual Fund Exposure to Adani Group
The mutual fund holdings saw an increase from ₹41,814 crore in July to ₹43,455 crore in October. Among these:
- Adani Ports and SEZ: ₹12,102 crore, with ₹5,308 crore in active funds.
- Ambuja Cements: ₹10,689 crore, of which ₹10,100 crore was held by active funds.
- Adani Enterprises: ₹8,714 crore, a rise from ₹7,291 crore in July.
Impact of Recent Allegations
Adani stocks have plunged up to 20%, significantly impacting mutual fund investments. The updated value of these holdings will be available on November 22.
Mutual Funds with Highest Adani Exposure
- SBI Focused Equity Fund: ₹1,059 crore in Adani Ports (3.03% of assets).
- HDFC Mid-Cap Opportunities Fund: ₹1,041 crore in ACC (1.39% of assets).
- Quant ELSS Tax Saver Fund: ₹835 crore in Adani Power (7.6% of assets).
Net Exposure Highlights
- Quant Small Cap Fund: ₹727.47 crore in Adani Enterprises (2.76% of assets).
- Mirae Asset Nifty Metal ETF: 10.58% of its portfolio in Adani Enterprises.
- PGIM India Arbitrage Fund: 6.97% of its assets in Ambuja Cements.
Sectoral Distribution
- Passive funds (e.g., ETFs) hold stakes in Adani Green Energy (₹252 crore) and Adani Total Gas (₹94 crore).
- Active funds dominate in companies like Ambuja Cements and Adani Enterprises.
Concerns for Investors
The sharp decline in Adani Group stocks has raised concerns for mutual fund investors, especially those heavily exposed to the group. Passive funds tracking indices may see unavoidable impacts, while active funds will need to carefully reassess their positions.
