INSUBCONTINENT EXCLUSIVE:
Norways Government Pension Fund Global, among the worlds largest sovereign wealth funds, raised its bets on Reliance groupcompanies even as
it started to exit Adani Group stocks.
The $1.3-trillion fund announced previously this month that it had actually completely exited Adani
Group companies, mentioning issues over environmental, social and governance (ESG) threats, to name a few factors
The Adani Group had actually likewise faced allegations of stock control and accounting fraud from US-based short seller Hindenburg
Research, whose report has caused a Rs 12.4-trillion fall in the valuation of Adani Group business
The group has rejected any misbehavior.
The Government Pension Fund Global had raised holdings in Mukesh Ambani group business by $180.5
million in 2022, shows an analysis of fund documents of the current holdings as of December 2022.
The set income documents revealed that it
had completely sold its investment in Adani Group business by December-end
It had holdings of $12.7 million in Adani Electricity Mumbai as of the end of 2021.
This may have been part of a bigger paring down of fixed
income investments in India
It decreased its holdings of federal government securities by $264 million
It likewise cut down its financial investment in Reliance Industries (RIL) bonds by $34.5 million to $37.8 million since December 2022
The RIL bonds have been categorized as government-related bonds
The fund stated that this was due to the bonds being ensured by the federal government of India, in response to an inquiry by Business
Standard.
It decreased to comment further on investment choices in relation to the Adani or Ambani groups.
The increase in Ambani
investments was not restricted to RIL
The overall bets increased in a minimum of four group business
Their ownership stake in Network18 Media and Investments increased from 1.38 percent at 2021-end to 1.87 per cent at 2022-end
The stake in RIL increased from 0.67 percent to 0.79 percent, Just Dial from 0.06 percent to 0.16 per cent, and TV18 Broadcast from 3.27 per
cent to 3.28 percent.
The sovereign wealth fund has actually significantly increased its bets on Indian equities since the pandemics
It held 317 equity financial investments worth $9.4 billion at the end of 2019
The first case of Covid-19 in India was discovered in January 2020
The total number of investments has actually increased to 416 and the worth has risen nearly 87.7 percent to $17.7 billion.
The Ambani and
Adani groups did not respond to a request for comment.
The Norway sovereign wealth fund has exited a number of companies with time citing
issues over ESG dangers.
We divested from 74 companies in 2022 following evaluations of ESG dangers ..
25 of the divestment choices involved companies that went into the funds benchmark index during 2022
Entirely, we have actually made 440 divestment choices considering that 2012, said the funds 2022 report on accountable financial
investment.
The fund is created to invest cash from petroleum income in such a way that would benefit future generations
It is now more than two times the size of the nations economy.
