In a notable shift in investor positioning, GQG Partners has increased its holdings across four Adani Group companies during the June-September quarter, while foreign institutional investors (FIIs) have reduced their exposure. This movement comes as the Securities and Exchange Board of India (SEBI) provided a clean chit regarding the Hindenburg allegations from January 2023, potentially influencing investor sentiment.

GQG Partners Increases Stakes

GQG Partners has shown increased confidence in the Adani Group by raising its stakes in multiple companies:

The most significant increase was observed in Ambuja Cements, where GQG Partners raised its stake by 0.70 percentage points.

LIC Maintains Strong Position

Life Insurance Corporation of India (LIC) has largely maintained its positions in Adani Group companies:

LIC increased its stake in ACC Ltd while slightly reducing its position in Adani Ports.

FII Reduction in Holdings

Foreign institutional investors have reduced their exposure across several Adani companies:

Interestingly, while FIIs reduced stakes in most companies, they increased their position in Adani Energy Solutions.

Analyst Coverage and Projections

Investec has initiated coverage on Adani Ports with a buy rating and a target price of ₹1,715. The firm projects that Adani Ports' operating cash flow may exceed ₹1 trillion over the fiscal years 2025-2030.

Regulatory Update

SEBI's clean chit regarding the Hindenburg allegations from January 2023 may have contributed to the renewed investor interest in Adani Group stocks. This development could potentially alleviate some concerns that had been weighing on investor sentiment.

The contrasting moves by different investor groups highlight the complex dynamics at play in the market's assessment of Adani Group companies. While some institutional investors are increasing their stakes, others are reducing exposure, reflecting diverse perspectives on the group's prospects and valuations.

Investors and market watchers will likely continue to monitor these shareholding changes closely, as they may provide insights into market sentiment and potential future trends for Adani Group stocks.

Adani Enterprises is making significant moves in both technology and real estate sectors, with a groundbreaking AI partnership with Google and a major property acquisition deal with Sahara. However, the company now faces a substantial notice from the Employees' Provident Fund Organisation (EPFO) regarding the Sahara properties acquisition.

Google Partnership for AI Data Centre Campus

Adani Enterprises, through its joint venture AdaniConneX, has announced a partnership with tech giant Google to develop India's largest AI data centre campus in Visakhapatnam, Andhra Pradesh. This collaboration marks a significant milestone in India's journey towards becoming a global AI powerhouse.

Project Overview

The partnership involves a substantial investment of approximately $15.00 billion over a five-year period from 2026 to 2030. This multi-faceted project aims to create a state-of-the-art AI hub that will significantly boost India's AI capabilities and digital infrastructure.

Key Components of the Partnership

Economic Impact and Job Creation

The development of this AI hub and connectivity gateway is expected to have a substantial economic impact:

• Create tens of thousands of jobs in technology, construction, and clean energy sectors
• Drive digital inclusivity across India
• Establish Visakhapatnam as a global technology destination

Sustainability Focus

Both Adani Enterprises and Google have emphasized their commitment to sustainability in this project. The partnership includes plans for:

• Development of new transmission lines
• Investment in clean energy generation
• Implementation of innovative energy storage systems

These initiatives aim to not only support the data centre's operations but also enhance the resilience and capacity of India's electricity grid.

Sahara Property Acquisition Deal and EPFO Notice

In a separate development, Adani Enterprises is prepared to purchase 88 properties as part of a significant agreement with Sahara. However, this deal has now come under scrutiny from the Employees' Provident Fund Organisation (EPFO).

Key Points of the Sahara Deal and EPFO Notice

• Adani Enterprises is set to acquire 88 properties from Sahara.
• The EPFO has issued a notice to Adani Enterprises seeking recovery of ₹1,567.00 crores related to the proposed acquisition.
• The notice highlights that multiple Sahara companies have defaulted on PF contributions, with some dues dating back to 1982.
• Under the Employees' Provident Funds Act, any entity acquiring assets must clear outstanding PF dues either before acquisition or provide an undertaking to pay post-acquisition.
• EPFO has directed Adani to acknowledge the outstanding dues and submit a detailed list of assets and liabilities it intends to acquire.
• The Supreme Court has heard pleas from both Sahara and Adani regarding the property sale, with multiple parties questioning Sahara's ownership of the assets.
• SEBI has clarified that Sahara can sell properties at no less than 90% of market value.
• An amicus has stated that Sahara must first pay ₹9,000.00 crores to SEBI.
• The Supreme Court has directed the Centre and SEBI to respond to Sahara's proposal and asked Sahara to examine employee claims regarding unpaid salaries.
• The next hearing is scheduled for November 11.

These developments showcase Adani Enterprises' strategic expansion in both the technology and real estate sectors, while also highlighting the complexities and potential challenges in major acquisitions. The company now faces the task of addressing the EPFO's concerns while proceeding with its planned expansion.