Hindenburg report: Mutual funds had already invested ₹41,814-crore in 10 Adani group companies

The new Hindenburg report alleged that Sebi Chairperson Madhabi Puri Buch and her husband Dhaval Buch owned stakes in offshore funds related to what Hindenburg calls the "Adani money siphoning scandal.” (ANI)


Mutual funds in India have currently invested 41,814 crore into Adani companies, according to a Moneycontrol report, which added that all these companies are now in focus due to the latest Hindenburg report.

The new Hindenburg report alleged that Sebi Chairperson Madhabi Puri Buch and her husband Dhaval Buch owned stakes in offshore funds related to what Hindenburg calls the “Adani money siphoning scandal.” (ANI)

The new report by US-based short seller Hindenburg Research LLC which cited whistleblower documents, alleged that Sebi Chairperson Madhabi Puri Buch and her husband Dhaval Buch owned stakes in offshore funds related to what Hindenburg calls the “Adani money siphoning scandal.”

Madhabi Puri Buch and her husband Dhaval Buch denied the allegations, calling them “baseless” and an attempt at “character assassination.”

Also Read: Madhu Kela’s advice for stock market investors on ‘conspiracy’ Hindenburg report: Don’t worry or be nervous

How did the report affect Adani Group shares?

The report was published on the night of Saturday, August 10, 2024. When the markets opened on Monday, August 9, Adani group shares were mostly in the red.

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Around 9.45 AM IST, Adani Enterprises Ltd dropped by 4.10%, trading at 3,054.50, Adani Ports and Special Economic Zone Ltd traded about 2.44% lower at 1,496.75, Ambuja Cements traded flat at 628.25, and ACC dropped by 1.49% at 2,316.35.

What are all the Adani group companies?

Currently 11 Adani companies are listed on the Indian stock exchanges. These include ACC, Ambuja Cements, Adani Ports and SEZ, Adani Energy Solutions, Adani Enterprises, Adani Green Energy, Adani Power, Adani Total Gas, Adani Wilmar, New Delhi Television (NDTV), and Sanghi Industries.

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However, mutual funds do not hold investments in NDTV, according to the Moneycontrol report.

How much have mutual funds invested in Adani shares?

Adani Ports and Special Economic Zone Ltd had the highest amount of investment by mutual funds at 13,024.22 crore, spread across 111 funds. Ambuja Cements came next, with an investment of 8,999.25 crore, ACC had an investment of 7,668.38 crore, and Adani Enterprises had a 7,290.63 crore investment, according to Value Research data.

How much have mutual funds invested in Adani Ports?

SBI Nifty 50 ETF invested the most ( 1,520.59 crore) in Adani Ports, while Kotak Equity Arbitrage Fund invested 701.90 crore and SBI Arbitrage Opportunities Fund invested 649.12 crore.

DSP Dynamic Asset Allocation Fund had the highest exposure at 4.17%, having invested 133.78 crore, followed by NJ Arbitrage Fund, which at 3.99%, invested 15.44 crore, and DSP Equity Savings Fund, at 3.04%, invested 40.99 crore in Adani Ports.

How much have mutual funds invested in ACC?

A total of 140 schemes invested 7,668.38 crore in ACC, but only 32 of them were passive schemes, and they invested only 63.47 crore at the end of July 2024.

HDFC Mid-Cap Opportunities Fund invested 1,149.44 crore, Mirae Asset Large & Midcap Fund invested 572.26 crore and SBI Contra Fund invested 373.88 crore.

PGIM India Arbitrage Fund had a 7.56% investment, UTI BSE Housing Index Fund had a 3.42% investment, and Kotak BSE Housing Index Fund invested 3.42%.

How much of the investments in Adani companies are from passive funds?

From the total of 41,813.57 crore, passive funds held 11,777.36 crore and passive mutual fund schemes held 30,036.21 crore.

Passive funds invested most in Adani Wilmar (100%), and least in ACC (0.8%). Adani Green Energy had a 92.1% investment, while Adani Total Gas had 91.8%.



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