In a major rebalancing of foreign institutional capital flowing into India, Capital Group has built a massive position worth over $2 billion (approx. ₹16,800 crore) across three key listed entities of the Adani Group.
The aggressive buying spree by the Los Angeles-based asset giant—which manages more than $3.3 trillion globally—marks a sharp shift in foreign investor sentiment, positioning Adani counters as preferred leveraged proxies for India’s macroeconomic expansion over traditional large-cap defensive plays.
1. Slicing Open the $2 Billion Adani Deployments
Rather than spreading the capital thin, Capital Group concentrated its open-market allocations entirely inside Adani’s infrastructure, utilities, and clean energy divisions:
- Adani Ports & SEZ (APSEZ): The single largest block transaction occurred on May 5, when Capital Group acquired a 2% equity stake in the ports major for ₹7,486 crore (~$776 million) through coordinated BSE block deals.
- Adani Power & Adani Green Energy: The fund house deployed the remainder of the $2 billion layout to systematically accumulate between 1.5% and 2% equity stakes in both the conventional power arm and the renewable energy utility through consistent open-market purchases.
2. The Great Indian Portfolio Rotation: Moving Away from Reliance
The capital infusion into Adani was largely funded by a strategic downsizing of Capital Group’s legacy holdings in Reliance Industries Ltd. (RIL).
According to Bloomberg portfolio tracking data, the global asset manager trimmed its Reliance position down to roughly 142 million shares, a massive reduction from its historical peak allocation of 755 million shares.
While Reliance has experienced slower short-term earnings growth after years of heavy capital expansion into consumer tech and retail, Adani’s pure-play alignment with the physical infrastructure buildout has drawn the bulk of returning Foreign Institutional Investor (FII) momentum:
| Listed Entity | 1-Year Trailing Stock Performance | Core Structural Narrative |
| Adani Power | +94% | Direct beneficiary of India’s surging, industrial baseload electricity demands. |
| Adani Green Energy | +35% | Capturing scale execution across the multi-gigawatt domestic decarbonization push. |
| Adani Ports & SEZ | +25% | Dominating national maritime container volumes and trade logistics infrastructure. |
| Reliance Industries | -8.36% | Facing cyclical refining pressures and a slower consumer monetization timeline. |
3. Clearing the Legal and Regulatory Overhang
The timing of Capital Group’s multi-billion-dollar entry is highly strategic. It lands immediately after a substantial easing of global legal risks that had previously sidelined risk-averse US institutional funds.
Confidence rebounded sharply following developments indicating that the US Department of Justice (DOJ) moved to dismiss criminal fraud charges related to billionaire founder Gautam Adani. Concurrently, a separate sanctions-related compliance probe by the US Treasury Department into Adani Enterprises was permanently resolved via a $275 million settlement framework.
By clearing these heavy overseas regulatory cloud covers, the group restored its baseline investment-grade profile, paving the way for blue-chip multi-asset managers like Capital Group to commit long-term equity capital to the conglomerate’s development pipeline.