Why Mutual Funds Invested in 46 Lakh Shares of Adani Enterprises Last Month?
In October, Mutual Fund invested in around 46 lakh shares of Adani Enterprises, and the number of shares increased by 2.5 crore in September to approx. 2.96 crore, as per a report.
Shares of Adani Enterprises, which saw a 20% drop on Thursday due to charges against billionaire Gautam Adani and seven others in the United States over a multibillion-dollar bribery and fraud scheme, were considered the top large-cap picks for mutual funds last month.
Adani Enterprises
According to data sourced from NSE, Quant Mutual Fund bought about 66.61 lakh shares of Adani Enterprises; on the other side, Invesco Mutual Fund sold approximately 7.57 lakh shares of the same stock.
Adani Power
Tata Mutual Fund decreased its holdings in Adani Power by selling approximately 19.99 lakh shares from its portfolio during October.
Adani Ports and Special Economic Zone (SEZ)
Sundaram Mutual Fund bought around 5.68 lakh shares of Adani Ports and Special Economic Zone (SEZ).
ACC
Nippon India Mutual Fund completely exited its position in ACC in October by selling around 82,224 shares.
As per the case filed on Gautam Adani by the US Securities and Exchange Commission, he has been charged with reportedly “defrauding American investors and bribing officials.” Adani, nephew of Adani, Cyril Cabanes, executives of Adani Green Energy, and an executive of Azure Power Global Ltd. were charged with “conspiracy to commit securities and wire fraud, as well as substantive securities fraud, for their role in the multi-billion-dollar scam to raise money from US investors and global financial institutions by misleading statements.”
According to the indictment, Adani and others who are involved paid around $265 million in bribes and expected that these contracts would bring $2 billion in profit over 20 years. Prosecutors said those involved in the scheme used the code names “Numero uno” and “the big man” to refer to Gautam Adani.
The indictment also charges that Adani, his nephew Sagar Adani, and another executive, Vneet Jaain, made things difficult by hiding bribes to obtain more than $3 billion in loans and bonds for Adani Green Energy.
