Foreign ownership in Adani Enterprises Ltd., the flagship company of billionaire Gautam Adani’s business group, has fallen to a record low, highlighting the growing role of domestic investors in supporting the company’s shareholding base.
Foreign portfolio investors held an 8.8 per cent stake in Adani Enterprises at the end of the June quarter, the lowest level recorded since 2009, according to data from Prime Infobase. The figure is significantly below the company’s average foreign holding of more than 18 per cent over the past decade and has declined from a peak of nearly 23 per cent in September 2023.
The drop follows exits by several overseas investors, including a recent stake sale by US-based investment firm GQG Partners, which had emerged as a major supporter of the Adani Group after the Hindenburg Research report in January 2023 triggered a sharp fall in the group’s market value.
Meanwhile, domestic institutional investors increased their stake in Adani Enterprises to 9.3 per cent during the June quarter, surpassing foreign holdings for the first time. Analysts said the trend reflects a broader reduction in foreign investor exposure to Indian equities, while domestic mutual funds have expanded their investments due to strong inflows. Market experts noted that the changing investor pattern does not solely reflect company-specific factors but is also linked to wider global and domestic investment trends.
