Quant Mutual Fund Hit Hard by Adani Group Share Slump

Quant Mutual Fund (MF) has faced significant losses following the sharp decline in Adani Group shares on Thursday. The slump was triggered by the indictment of Gautam Adani and seven others by the U.S. Securities and Exchange Commission (SEC) over alleged bribery and fraud in a solar energy project.

Largest Exposure to Adani Stocks Among Fund Houses

With assets under management exceeding ₹1 trillion, Quant MF had the highest exposure to Adani Group shares among large Indian fund houses. As of October 31, the fund house held nearly ₹5,000 crore worth of Adani stocks, according to the PRIME Database.

Big Bet on Adani Enterprises’ QIP

Quant MF was the largest investor in Adani Enterprises’ ₹4,200 crore Qualified Institutional Placement (QIP) last month. The fund’s schemes acquired nearly half of the shares at ₹2,962 each. However, since then, the stock has fallen by 27%, closing at ₹2,160 on Thursday.

Repeat of Previous Adani-related Losses

This is the second time Quant MF has suffered due to a steep fall in Adani shares. The fund was the largest mutual fund investor in Adani stocks when the Hindenburg report emerged in early 2023, triggering a market crisis. While Quant MF exited all Adani shares during that period, it managed to secure profits from most of its previous investments.

Other Fund Houses with Significant Exposure

Apart from Quant MF, three other large fund houses — ICICI Prudential MF, HDFC MF, and SBI MF — had around ₹2,500 crore exposure each to Adani Group stocks. Other notable investors, such as Mirae Asset, Tata MF, and Aditya Birla Sun Life, each held over ₹1,000 crore worth of Adani shares as of October 31.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.