Capital Group Invests Over $2 Billion In Adani Firms: Bloomberg Report

US-based investment management firm Capital Group has significantly increased its investments in Adani Group companies while reducing its exposure to Reliance Industries Ltd (RIL), according to a Bloomberg report citing people familiar with the matter.

The report said Capital Group acquired stakes worth more than $2 billion across three Adani Group firms, Adani Ports, Adani Power, and Adani Green Energy.

On May 5, the investment firm purchased nearly a 2 per cent stake in Adani Ports and Special Economic Zone Ltd through open-market transactions valued at Rs 74.86 billion ($776 million), according to BSE block-deal data cited in the report.

Neither Capital Group nor Adani Group commented on the development.

A spokesperson for Capital Group reportedly said the firm could not comment on individual stocks or shareholdings.

According to Bloomberg, the increased exposure to Adani stocks reflects improving investor confidence following months of regulatory scrutiny and market volatility surrounding the conglomerate.

The report also noted that the US decision to drop charges against Adani Enterprises Ltd has been viewed as a major boost for the Adani Group.

Market experts believe the move could strengthen investor confidence and support the conglomerate’s ability to raise global capital.

At the same time, Capital Group’s holdings in Reliance Industries have declined sharply over recent years, the report said.

Bloomberg data cited in the report showed that Capital Group held around 142 million shares in Reliance Industries at the end of the latest reporting period, down from about 500 million shares six years ago and a peak of 755 million shares in March 2017.

Reliance Industries shares have fallen 8.36 per cent over the past year, according to the report.

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