FIIs Cut Stakes in Adani Group Amid Strong Domestic Buying in March 2025 Quarter

In a significant shift during the March 2025 quarter, foreign institutional investors (FIIs) reduced their stakes in several Adani Group companies, even as domestic institutional investors ramped up their investments.

According to market disclosures, FIIs sold shares worth approximately Rs 3,600 crore across key Adani firms. The reduction was seen across five major entities—Adani Green Energy, Adani Ports & SEZ, Ambuja Cements, ACC, and Adani Enterprises.

The most notable divestment happened in Adani Green Energy, where FII holdings fell from 13.68% to 12.45%, resulting in a sell-off of nearly Rs 1,850 crore. Adani Ports & SEZ also saw a reduction of 0.5%, as FIIs cut their stake from 13.93% to 13.42%, amounting to Rs 1,310 crore.

Other Adani group companies also experienced FII exits:

• Ambuja Cements: FII stake dropped by 0.54% to 8.6%, translating to Rs 700 crore.

• ACC: A decline of 0.31% to 4.83%, or Rs 110 crore.

• Adani Enterprises: A smaller reduction of Rs 54 crore.

In contrast, domestic institutional investors showed strong confidence in the Adani group. Key players like Life Insurance Corporation of India (LIC), insurance companies, pension funds, and mutual funds significantly increased their stakes across various Adani entities during the same period.

Meanwhile, GQG Group made selective investments, increasing its stake in some Adani Group companies. It invested around Rs 430 crore each in Adani Green Energy (raising its stake to 4.49%) and Adani Enterprises (to 3.84%). It also added to its holdings in Adani Energy Solutions (5.23%) and Adani Power (5.10%), with investments of Rs 141 crore and Rs 30 crore, respectively. However, GQG reduced its stake in Adani Ports & SEZ, selling shares worth Rs 225 crore and trimming its holding to 3.93%.

The March 2025 quarter reveals a clear divergence in sentiment between foreign and domestic investors when it comes to the Adani group. While FIIs chose to exit, Indian institutions appear to be doubling down on their faith in the group’s long-term potential.