Nine Mauritius-based funds have divested their exposure to Adani Green Energy, even as another Mauritius-based promoter increased its own stake in the renewables company.
Six of the nine companies are some of the biggest stakeholders in all Adani Group Companies, where they rarely sell their Adani Group shares.
Out of the funds, Elara India Opportunities Fund, Cresta Fund, Albula Investment Fund and APMS Investment Fund had parked over 90 percent of their managed fund value of $6.9 billion into Adani companies in June. Public records indicated that the six large Mauritius based funds have not been divested from any other Adani Group Company.
Of these four, three are currently under investigation by the National Securities Depository Ltd, which froze their respective accounts. The four funds had previously invested in Winsome Diamonds and Jewellery, Sterling Biotech, Ruchi Soya Industries and Karuturi Global. Of these, owners of two companies are fugitives after defaulting on loans and the other two went bankrupt.
At the same time, Infinite Trade and Investments Ltd which is a promoter of Adani Green Energy, has purchased shares to bring the total promoter shareholding of the company to 60.14 percent from 56.29 in March. All four Adani companies are already close to the regulatory limit of 75 percent promoter shareholding for public companies.
Adani Green Energy is the big bet on renewables in the coming years from group chairman Gautam Adani, who is competing against Reliance Industries Limited’ CEO and MD, Mukesh Ambani’s dreams of building a green energy business to facilitate India’s journey to net zero.
Adani has already installed a renewable capacity of 20 gigawatts, while Reliance wants to establish 100 gigawatts of solar energy by 2030, and a Green Energy Giga complex. Adani plans to invest $20 billion across renewable energy generation, component manufacturing, transmission and distribution businesses.
(Edited by : Jomy Jos Pullokaran)