Four foreign funds in limelight for skewed investment in Adani group firms

At least 4 foreign funds are in the limelight for their skewed investment in Adani group companies. Elara India Opportunities Fund, Albula Investment, APMS Investment and Cresta Fund have investment in a number of domestically listed firms besides the Adani group firms. 

However, the value of their holdings in Adani group stocks is between 94.7% and 98%, raising eyebrows over their investment decisions. Albula, APMS and Cresta are registered as FPI under Category I with Sebi. The registered address for all the three funds is on Edith Cavell Street Port Louis, Mauritius.  

The group said all 3 funds have been investors for over a decade and their ownership in other group firms is due to demergers. A large portion of the 25% public float, however, is with funds such as Elara, Albula, LIC, Opal, APMS and Cresta. As a result, market experts say the actual free float is low, which could potentially hamper fair price discovery