The Singapore-based asset manager Helios is betting on the Adani group's flagship asset in India, believing it will be the next major winner for its funds amid the global AI boom.
Acquisition of Adani Shares
According to data collected by Bloomberg, the Singaporean manager acquired approximately 770,000 shares of Adani Enterprises Ltd. during the second quarter through three of its funds, with two of them making a purchase for the first time.
Helios Founder's Stance
Samir Arora, founder of Helios, noted in a recent interview that further investments are justified by the reduction in legal and reputational risks associated with Adani, as well as the group's activities in ports and new energy projects. He emphasized that the company has always appealed to them in terms of execution, given that they own shares in Adani Ports & Special Economic Zone.
Financial Performance and Market Trends
As a result, Arora's managed Helios Flexi Cap Fund showed a return of about 8 percent over the last year, outperforming 91 percent of its competitors, while the Nifty 500 TR index fell by 0.7 percent over the same period. Helios's support for Adani underscores the momentum the group recently gained after reaching a settlement in the US regarding sanctions-related allegations and resolving corruption claims.
Adani's Investment Plans and View on India
Adani plans to invest around $100 billion in developing data centers and digital expansion using its extensive energy assets. Since India lacks a strong domestic semiconductor base, global and local investors are focusing on such secondary infrastructure projects, which is stimulating sharp growth in Adani's energy stocks.
Due to the changing technological landscape influenced by AI, Helios funds have exited some of their historically largest positions, such as in Indian software services, as AI has made this sector difficult to invest in. Nevertheless, Arora remains optimistic about several other companies, including food delivery firms Eternal Ltd. and One 97 Communications Ltd., the owner of Paytm.
Overall Outlook for India
He is also positive about the broader prospects for India, noting that major hurdles are disappearing. According to him, oil prices are stabilizing, and the weakening rupee may be mitigated by expected foreign capital inflow, especially into bonds. The fund has shifted towards financial companies, consumer durables, defense industry, energy infrastructure, electronic manufacturing services, and consumer goods companies. Arora concluded that 'there were two or three reasons why people disliked India, and all of them are going away.'