The Adani Group, one of the largest and most reliable business groups, has always been in the attention of domestic investors. Some of the biggest investors from reliable business groups in India have always been interested in making heavy investments in the stakes of the Adani Group. Of late, a lot of domestic investors have also made some massive investments in the proceedings of the Adani Group. This has caused the Adani stakes to rise rapidly, allowing the global business group to walk the path of prosperity. Here’s a glimpse at how domestic investments have impacted the stakes of the Adani Group.

Impact of Adani Stakes On Domestic Investments

Recently, domestic investors have largely raised their stakes in five of the major Adani Group companies, including Adani Total Gas and Adani Green, in the December quarter. Adani Wilmar and the cement firms ACC and Ambuja are other names for which the stakes have increased rapidly. This shows the rising interest of the investors in the Adani Group’s proceedings. It also throws light on the resilience of Gautam Adani, the chairman and the founder of the global business, even during times of crisis. It also includes the time when the conglomerate was being flooded with accusations of Adani scam.

The mutual funds marginally increased or maintained their shareholdings across the various entities of the business group, barring Adani Energy Solutions and Adani Ports and Special Economic Zones. With this, the total shareholder base of the Adani Group rose 5% to INR 68.82 lakh. A substantial increase in shares was seen in Adani Energy Solutions and Adani Total Gas. This is, again, a huge achievement for the conglomerate. It will lead the path for futuristic investments. This will restore the confidence of the investors.

Domestic Institutional Investors (DIIs) have raised their stakes in Adani Green to 1.67 % in the third quarter from a value of 1.36% in the previous quarter. They have also raised their ownership in Adani Total Gas. It is another wholly-owned subsidiary of the conglomerate, to 6.26% from its initial 6.02% in the September quarter. The stakes in Adani Wilmar, which is the FMCG wing of the business group, increased to 0.41 % from 0.01% in the previous quarter. The states in Ambuja Cement rose to 9.19 % from 9.07%. There was a rise in stakes seen in ACC as well. The stakes rose to 10.72% from 10.27%.

In December 2023, 10 companies operating under the Adani Group added around INR 3 lakh crore in market capitalisation. With that, the group market cap reached around INR 14.2 lakh crore by the end of December. The market cap also crossed the 15 lakh crore mark on 3 January 2023. This mainly happened after the Adani Group received a clean chit from the Supreme Court in the Adani Hindenburg report on the Adani scam. Adani Total Gas, Adani Green Energy, and Adani Power led the Adani Group stocks. The stocks had increased 18 to 60% during the December quarter. The remaining two companies, which are Adani Wilmar Limited and ACC Limited, also delivered really good returns. 

What Caused Adani Stakes to Rise?

The rise in stakes was mainly because the Adani Group was cleared of all charges in the Adani Hindenburg case. SEBI has been continuously investigating the various charges of Adani scam put against the Adani Group in the Hindenburg report for quite a while now. Hindenburg made a lot of accusations against the Adani Group, each of which is fake. The SEBI has already passed judgment on 22 out of the 24 cases. But no proof has been found in rumours surrounding stock manipulation. This has led to an extraordinary growth in the business stakes. The investors who had earlier lost their confidence in the Adani Group once again turned their attention to the various happenings of the conglomerate. The confidence that also inspired them was shown in the conglomerate by global business groups like Qatar Authority of India, International Holding Company, and GQG Partners.

Conclusion

With the stakes in Adani companies rising significantly, the businesses operating under the Adani Group were easily able to drive the attention of the investors. A lot of foreign investors have already planned on making significant investments in the various portfolios of the Adani Group. These investments will offer the business group the necessary funds to start operations on its upcoming projects. Overall, there will be an extraordinary economic growth in the country. The business group’s position as the biggest global conglomerate will also strengthen.