Mutually Constrained

The valuations of Adani Group firms are much lower than earlier, but concerns around governance, transparency and float remain, say mutual fund managers

- ASHISH RUKHAIYAR

AROUND EARLY-FEBRUARY when Adani-Hindenburg issue was the at its peak, there were many in the markets and outside-who were highlighting a data point to support their argument that there were many shortcomings related to the conglomerate. They drew attention to the fact that mutual funds (MF), which channelise huge amounts of retail money into the stock markets, have stayed away from stocks of Adani Group firms even though the conglomerate is one of the largest business houses of the country.

It is not that MFs do not own shares of Adani Group companies, but given the spread and size of the Gautam Adani-led conglomerate, the exposure of mutual fund houses is minuscule, say market watchers. For instance, MFs hold just 1.19 per cent stake in Adani Enterprises the flagship company of the conglomerate even as the stake is held through 88 different fund schemes, per data from Value Research. For perspective, MFs hold a cumulative 5.81 per cent in Reliance Industries through 443 MF schemes, according to BSE and Value Research data.