Foreign Ownership in Adani Enterprises Hits Record Low

Foreign ownership in Adani Enterprises Ltd. has plummeted to a record low, according to reporting from the Financial Post. Data from Prime Infobase shows that foreign portfolio investors held a combined 8.8% stake at the end of the June quarter, the lowest level since tracking began in 2009. This marks a significant drop from a peak of nearly 23% in September 2023 and falls well below the ten-year average of over 18%.

The shift is driven by exits from long-term overseas investors, including US-based GQG Partners. GQG had previously been a critical supporter following a January 2023 report from Hindenburg Research that triggered a selloff, erasing over $150 billion in market value at one point.

As global capital retreats, domestic institutions have filled the void. In the June quarter, domestic holdings in Adani Enterprises rose to 9.3%, surpassing foreign fund ownership for the first time. Specifically, SBI Funds Management Ltd., India's largest mutual fund, acquired a 1.3% stake following the GQG sale in June and later subscribed to nearly 15% of shares in a $1.6 billion fundraising round.

Deven Choksey, managing director at DRChoksey FinServ, told the Financial Post that the decline is part of a broader trend of foreign investors reducing exposure to Indian equities, while domestic mutual funds increase stakes via strong inflows. Despite the shift in ownership, Adani Enterprises shares have surged more than 40% this year, becoming the top performer on the Nifty 50 index, though they remain 24% below their pre-Hindenburg levels.