Capital Group pivots to Adani with USD 2 bn stake, trims Reliance

Capital Group shifts focus to Adani: The US-based investment firm Capital Group has poured upwards of USD 2 bn into three Adani Group entities in recent weeks, while cutting its holdings in Reliance Industries, Bloomberg reports. The capital injection spans Adani Ports, Adani Power, and Adani Green Energy.

Adani Ports leads the charge: Capital Group snapped nearly 2% stake in Adani Ports on 5 May for INR 74.8 bn (USD 776 mn) through open-market transactions, according data cited by Bloomberg. It has similarly scooped up 1.5-2% stakes in both Adani Power and Adani Green Energy through continued market purchases.

A clean slate in the US: The buying spree comes on the heels of a regulatory reset for the Adani Group that clears a significant overhang for US investors. The US Department of Justice recently moved to dismiss criminal fraud charges against Gautam Adani, while the US Treasury Department settled a sanctions-related probe into Adani Enterprises for USD 275 mn.

The other side of the rotation: To make room for the Adani acquisitions, the Capital Group pared its Reliance exposure — it held about 142 mn Reliance shares at the end of March, down from about 500 mn six years earlier, according to Bloomberg’s analysis. Reliance Industries shares have shed 8.36% over the past year, while Adani Power gained 94%, Adani Green (35%) and Adani Ports (25%).

Why it matters: For Gulf investors, the shift signals the preferred option of foreign investors among the two Indian giants — Adani businesses are tied to India’s infrastructure buildout and energy transition, offering lucrative returns.

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