Hindenburg fallout: Goldman Sachs sold 11.9 mn Adani shares from ESG portfolios in Feb
Goldman Sachs Asset Management’s actively managed ESG fund exposure to Adani Group is limited to roughly 400,000 shares in Ambuja Cements, said the report
- May 17, 2023,
- Updated May 17, 2023 5:20 PM IST
Goldman Sachs dramatically reduced its exposure to Adani Group in its ESG portfolios in February weeks after the explosive Hindenburg report, said a report on Wednesday.
Goldman funds registered as promoting environmental, social and governance goals under European Union rules sold about 11.7 million shares in Adani Group's listed firms in February, according to data compiled by Bloomberg.
After the reduced exposure, Goldman Sachs Asset Management’s actively managed ESG fund exposure to Adani Group is limited to roughly 400,000 shares in Ambuja Cements Ltd, the report added.
In its January report, Hindenburg Research had raised several governance concerns around the Adani group, leading to a loss of more than $100 billion in the market capitalisation of companies in the group founded by billionaire Gautam Adani.
The Bloomberg report comes at a time when two Adani Group firms said on Saturday they'll together raise up to Rs 21,000 crore from the market in the form of QIP or other permissible modes.
Adani Enterprises said it will raise up to Rs 12,500 crore and Adani Transmission said its board approved raising up to Rs 8,500 crore.
An Adani spokesperson told Bloomberg that the fundraising plans aren't related with Goldman Sachs' reduced exposure to the ports-to-power conglomerate.
“Goldman Sachs cutting Adani group stakes from ESG funds and Adani Group companies now seeking to raise capital are two entirely separate events,” a spokesperson for Adani said by email. “The former is related to the market sale of equity shares in the secondary market, where the group or group companies have no role to play. On the other hand, the latter is related to enabling provisions for the primary issue for capital raising by the two group entities, Adani Enterprises Ltd. and Adani Transmission Ltd. We do not foresee any change or impact of the former on our fund-raising plans, as the two events are completely unrelated.”
Overall, the number of ESG funds, including ETFs, with direct holdings in Adani companies dropped to 59 from 90 at the beginning of February, according to Bloomberg data.
Also Read: Adani-Hindenburg row: Supreme Court gives Sebi extension till August 14 to complete probe
Goldman Sachs dramatically reduced its exposure to Adani Group in its ESG portfolios in February weeks after the explosive Hindenburg report, said a report on Wednesday.
Goldman funds registered as promoting environmental, social and governance goals under European Union rules sold about 11.7 million shares in Adani Group's listed firms in February, according to data compiled by Bloomberg.
After the reduced exposure, Goldman Sachs Asset Management’s actively managed ESG fund exposure to Adani Group is limited to roughly 400,000 shares in Ambuja Cements Ltd, the report added.
In its January report, Hindenburg Research had raised several governance concerns around the Adani group, leading to a loss of more than $100 billion in the market capitalisation of companies in the group founded by billionaire Gautam Adani.
The Bloomberg report comes at a time when two Adani Group firms said on Saturday they'll together raise up to Rs 21,000 crore from the market in the form of QIP or other permissible modes.
Adani Enterprises said it will raise up to Rs 12,500 crore and Adani Transmission said its board approved raising up to Rs 8,500 crore.
An Adani spokesperson told Bloomberg that the fundraising plans aren't related with Goldman Sachs' reduced exposure to the ports-to-power conglomerate.
“Goldman Sachs cutting Adani group stakes from ESG funds and Adani Group companies now seeking to raise capital are two entirely separate events,” a spokesperson for Adani said by email. “The former is related to the market sale of equity shares in the secondary market, where the group or group companies have no role to play. On the other hand, the latter is related to enabling provisions for the primary issue for capital raising by the two group entities, Adani Enterprises Ltd. and Adani Transmission Ltd. We do not foresee any change or impact of the former on our fund-raising plans, as the two events are completely unrelated.”
Overall, the number of ESG funds, including ETFs, with direct holdings in Adani companies dropped to 59 from 90 at the beginning of February, according to Bloomberg data.
Also Read: Adani-Hindenburg row: Supreme Court gives Sebi extension till August 14 to complete probe