New Delhi, May 22: Recent trends show a significant shift in foreign companies’ investment strategies towards major business houses in India. The prominent American investment firm, Capital Group, has increased its investment in Adani Group companies while reducing its stake in Reliance Industries Limited (RIL), according to a new report.
A Bloomberg report revealed that the firm, based in the United States, has acquired a stake worth $2 billion in three Adani companies: Adani Ports, Adani Power, and Adani Green Energy.
The report stated that on May 5, Capital Group purchased nearly 2% of Adani Ports and Special Economic Zone Limited (APSEZ) in the open market for ₹7,486 crores (approximately $776 million).
Neither Capital Group nor Adani Group has commented on this report. However, a spokesperson from Capital Group mentioned that they are “unable to comment on individual stocks or shareholdings.”
The report also highlighted a recent surge in Adani Group’s shares, indicating a return of investor confidence following months of regulatory scrutiny.
The U.S. decision to withdraw allegations against Adani Enterprises Limited has been described as a “major victory” for the Adani Group and a positive development for the industry and the country. Experts believe this will strengthen investor confidence and open avenues for the group to raise global capital.
Meanwhile, according to Bloomberg, Capital Group’s investment in Reliance has “rapidly decreased over the past few years.”
Data compiled by Bloomberg indicates that Capital Group currently holds approximately 142 million shares in Reliance Industries, down from nearly 500 million six years ago, with a peak of 755 million shares in March 2017.
The report noted that Reliance Industries’ shares have seen a decline of 8.36% over the past year.
Leave a Comment