Retail investors have hiked stake in five out of 10 listed Adani Group companies during the June quarter even as some of the stocks have fallen sharply, given the uncertainty over the Supreme-Court initiated SEBI investigation into the Group’s funding structure.
According to data sourced from the BSE, NDTV and Adani Total Gas have seen retail investor stake going up 4.31 percentage points and 2.06 percentage points, while that of Adani Transmission and Adani Wilmar were up one percentage point and 0.24 percentage points. Investors’ holding in ACC was up 0.24 per cent.
However, in the March quarter, retail investors increased stake in all the 10 short-seller Hindenburg report-hit Adani Group as investors took advantage of fall in stock prices.
Interestingly, NDTV, which has attracted huge retail interest, had plunged 60 per cent to ₹227 a piece from a high of ₹568 in September, while Adani Total Gas dropped 83 per cent from a high of ₹3,764 a piece to ₹654 in June-end.
The other five
Among the companies that saw a decrease in retail investment include Adani Enterprises (-0.24 percentage points), Adani Ports (-0.40 percentage points), Adani Green Energy (-0.15 percentage points), Ambuja Cement (-0.88 percentage points) and Adani Power (-0.49 percentage points).
The combined market capitalization of all Adani shares surged 10.4 per cent to ₹10.1-lakh crore at the end of June quarter.
The value of retail investment in all 10 Adani Group companies was about ₹43,000 crore as of Q1-end.
Promoter stake down
The promoter entities have cumulatively cut its stake in four group companies by four per cent since the beginning of the year. While the promoter holding in Adani Transmission has come down 5.92 per cent since January, Adani Enterprises and Adani Green Energy saw about 5 per cent dilution. The promoter holding in Adani Ports & SEZ has reduced to 63 per cent from 65 per cent as of December-end.
Manish Chowdhury, Head of research at StoxBox, said the outcome of the ongoing SEBI investigation expected in August would be a crucial factor in deciding the fate of Adani Group stocks and the result could lead to heightened volatility.
Though there has been some moderation in the valuation of the Adani Group companies since the Hindenburg report, they are still trading at premium multiples given their financial performance track record, he said.