Adani group defies stock index logic

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Editor's note: In the rise of Reliance Industries over the last four decades to become India’s most valuable company, one aspect always stood out. It was how its founder Dhirubhai Ambani created wealth for investors in the company, especially individual shareholders. That sits in sharp contrast with the Adani group, which is now the most valuable family-owned business in India. In under five years, the group’s seven listed companies have gone from a valuation of less than Rs 1,00,000 crore to Rs 18,23,000 crore. Yet its individual shareholders hold shares worth just Rs 40,000 crore, compared to Rs 1,38,000 crore in the case of Reliance, which is now valued at Rs 15,95,000 crore. Equity mutual funds, which can be a proxy for individual investors, too hold a negligible stake in all the Adani companies. All of the Adani group companies (not counting the recently acquired cement companies) figure among the top 50 most valuable companies, as per the NSE’s top 100 ranking. At the same time, three of them are among five private companies with the lowest individual shareholding. Adani Transmission tops …