Shareholding moves in Q4: Investors' verdict on India's conglomerates

Mint

02-05-2025

As markets whipsawed from February's depths to March's resurgence, India's mightiest business empires—from Tata to Birla faced a high-stakes showdown. While the Nifty 50 clawed back to flat (by the fiscal year end), a
Mint
analysis of the country's leading business houses—Tata, Reliance, Adani, Rahul Bajaj, and Aditya Birla—with a fifth of India's market capitalization, unveiled a striking divergence: overseas and small investors retreated, while local institutional investors doubled down on select bets, hinting at a fascinating long-term focus.
India's most valuable conglomerate, the
₹
27.5 trillion Tata group, saw a dramatic reshuffle in its investor ownership. Foreign portfolio investors (FPIs) and retail shareholders slashed their stakes in key companies like TCS,
Tata Motors
,
Tata Power
, and Tata Steel, sequentially pruning their holdings in over 60% of the group companies. Yet, domestic mutual funds (MFs) stepped in aggressively, raising ownership in around 52% of the groups' firms. However, despite this institutional support, the group's market cap fell by 11%, the worst among its peers.
Also read
Shareholding moves in Q4: Retail investors jump ship in choppy waters
In Mukesh Ambani-led Reliance group companies, FPIs and retail investors reduced their holdings in around 60%, including companies like Reliance Industries (RIL),
Just Dial,
and Sterling & Wilson. However, domestic investors absorbed the shock, increasing their stakes in RIL, Jio Financial, and other units. This resilience helped Reliance eke out a modest 1% gain, narrowly avoiding the fate of its struggling rivals.
The Adani group bore the brunt of the quarter's sell-off, with FPIs cutting exposure in 50% and retail investors fleeing even faster (67%) in the group companies. Flagship
Adani Enterprises
, along with Adani Ports, Adani Green, and Ambuja Cement, saw a reduction in their stakes. Yet, domestic institutions again saw an opportunity, raising their stakes in Adani Green,
Adani Power
, and Ambuja Cement—a sign that some remain bullish on the group's long-term infrastructure bets. Still, the group's market cap fell 5.6%, reflecting lingering scepticism.
While FPIs and retail investors reduced their holdings in the Rahul Bajaj group by reducing their stakes in 40% and 50% of the group firms, respectively, the conglomerate emerged as the quarter's biggest winner.
Bajaj Finance
, which makes up 44% of the group's value, remained a magnet for foreign investors. Strong performances from Bajaj Finserv, Bajaj Auto, and Bajaj Consumer helped the group surge 17%—far outpacing its peers.
Also read
Shareholding moves in Q4: Retail investors chased beaten down stocks
FPIs and retail investors pulled back sharply from the Aditya Birla Group, trimming stakes in 63% of the group, including UltraTech Cement, Hindalco, and Grasim. But domestic mutual funds held firm, increasing overall ownership in 50%. This support helped the group post a 4% gain, proving that local confidence can counterbalance global jitters.
This is the third part of a series of data stories on the latest shareholding pattern. Read the
first
and
second
parts
here.