Foreign Investors Trim Stakes in Adani Group Firms, Offload Over ₹7,000 Crore in Q2 2025

Foreign institutional investors (FIIs) have significantly reduced their holdings in several Adani Group companies during the September quarter of 2025, collectively offloading shares worth over ₹7,000 crore. This move reflects a broader trend of FIIs easing exposure to large-cap stocks amid market volatility.

Key Sell-Offs in Adani Group Firms

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With FIIs selling shares worth roughly ₹2,927 crore, Adani Energy Solutions stock had the steepest selling among the Adani Group firms. In the second quarter, their aggregate stake in the business dropped from 15.9% to 13.1%. Adani Green Energy, Adani Ports & SEZ, Adani Power, and Adani Transmission are among the other companies whose FII interests were lowered. It's noteworthy that GQG Partners, a sizable investment, is no longer listed as a shareholder; however, it's unclear if the company has completely left or has just lowered its ownership below the one percent mark.

Market Dynamics and Investor Sentiment

FIIs' decision to reduce their holdings is consistent with a larger market trend in which foreign investors are turning their attention from large-cap equities to smaller stocks and public sector undertakings (PSUs). This change, according to analysts, is the result of recent corrections that have sharply reduced the value of PSU and smaller stocks, making them desirable investment options. Institutional investors have historically increased their exposure when valuations became enticing, which may account for the resurgence of buying activity in certain markets.

Regulatory Developments

The Securities and Exchange Board of India (SEBI) has exonerated the Adani Group of any claims of regulatory violations, even though FII holdings have decreased. Investor trust in the group's financial and operational procedures may be somewhat restored with this clearance.

Conclusion

The significant stake reduction by FIIs in Adani Group firms during the September quarter highlights shifting investment strategies and evolving market dynamics. While the group's regulatory clearance by SEBI may provide some reassurance, investors will continue to monitor the situation closely, balancing potential opportunities with associated risks.