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Mutual fund (MF) industry had an exposure of ₹26,388 crore as of December-end towards nine Adani Group companies, which have been battered on the bourses over the last two days after the US-based short-seller Hindenburg Research raised a series of questions on the Group’s financials.
Among the 44 MFs, SBI Mutual Fund had the highest exposure of ₹6,142 crore to the Group, with the biggest investment of ₹2,776 crore in Adani Enterprises, followed by ₹1,816 crore in Adani Ports & SEZ and ₹790 crore in Ambuja Cements.
Kotak Mahindra MF had an investment of ₹2,329 crore — ₹1,080 crore in Adani Ports & SEZ, and ₹661 crore and ₹495 crore in Ambuja Cements and Adani Enterprises, respectively.
Nippon India MF and ICICI MF have almost same exposure of ₹2,095 crore and ₹2,092 crore to the Group. Nippon India MF had the highest holdings of ₹689 crore, ₹663 crore and ₹282 crore in Adani Ports and SEZ, Ambuja Cements and Adani Enterprises.
ICICI MF had the highest investment of ₹693 crore, ₹506 crore and ₹382 crore in Adani Ports & SEZ, Ambuja Cements and ACC. Other mutual funds which have over ₹1,000 crore exposure to Adani Group companies include Axis MF, HDFC MF, Quant MF, Tata MF and UTI MF.
Among Adani group companies, Ambuja Cement and Adani Ports and SEZ attracted the maximum investment of ₹8,204 crore and ₹7,996 crore, respectively, from MFs. Their investments in Adani Enterprises and ACC amounted to ₹5,097 crore and ₹3,744 crore, respectively.
Mutual funds invested ₹557 crore and ₹395 crore in Adani Total Gas and Adani Transmission. Adani Green Energy, Adani Wilmar and Adani Power have MF investment of ₹374 crore, ₹15 crore and ₹6 crore, respectively. Exposure of most of the mutual funds to Adani Group companies are through their passive and index funds.
The sharp fall in Adani Group company stocks in the last two days will not have any immediate impact on the net asset value of equity schemes as they account for less than two per cent of the equity asset under management of ₹15.25-lakh crore of the mutual fund industry.
After investor wealth of about ₹1-lakh crore was eroded on Wednesday, the selling pressure in stocks of Adani Group companies intensified with most them caught in lower circuit on Friday.
Adani Ports lost nearly 20 per cent to hit two-year low at ₹572, while Adani Transmission, Adani Green and Adani Total Gas also lost 20 per cent each. Adani’s two new acquisitions — ACC lost 15 per cent, while Ambuja Cements shares crashed up to 25 per cent.
Adani Group’s flagship company Adani Enterprises tumbled 10 per cent, while Adani Power, Adani Wilmar and NDTV hit the 5 per cent lower circuit.
Devarsh Vakil, Deputy Head Retail Research, HDFC Securities, said dragged by massive selling mainly in Adani group and banking stocks, the benchmark equity indices have hit their three-month low.
Adani shares were in the line of fire with the Gautam Adani-controlled conglomerate losing over ₹3-lakh crore in market capitalisation on Friday, he added.
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