Helios Capital Raises Stake In Adani Enterprises On AI Growth Outlook

Singapore-based Helios Capital Management has increased its exposure to Adani Enterprises Ltd., betting that the flagship company of the Adani Group could emerge as one of the biggest beneficiaries of India's artificial intelligence (AI) infrastructure build-out.

Bloomberg-compiled data showed the asset manager bought around 770,000 shares of Adani Enterprises during the second quarter across three of its funds. Two of those funds invested in the stock for the first time.

The Helios Flexi Cap Fund, which manages assets worth about ₹75.8 billion, has delivered a return of around 8% over the past year, outperforming 91% of its peers. Over the same period, the Nifty 500 Total Return Index declined 0.7%.

Positive On The Adani Group

Founder Samir Arora said the firm's positive view on the Adani Group has strengthened as legal and reputational concerns surrounding the conglomerate have eased. He also pointed to the group's track record in executing large projects and its presence in ports and emerging energy businesses as key reasons behind the investment.

The fund house already owns Adani Ports & Special Economic Zone and has tracked the group's execution capabilities through that investment, Arora said.

AI Push Strengthens Investment Case

Helios' move comes as Adani Group positions itself as a major infrastructure player supporting India's AI ambitions. The conglomerate plans to invest about $100 billion in data centres and digital infrastructure by using its large energy business as a foundation for future AI-related projects.

With India's domestic semiconductor ecosystem still developing, investors have increasingly looked at companies involved in the infrastructure needed to support AI. That trend has driven strong gains in several Adani Group energy stocks.

Helios joins investors such as Capital Group and SBI Funds Management in raising exposure to Adani companies.

Shift Away From IT Services

Arora said Helios has reduced exposure to some of its long-held software services investments as rapid advances in artificial intelligence have made the sector more challenging from an investment perspective. He, however, said the fund remains positive on select technology companies.

Apart from Adani Enterprises, Helios continues to favour stocks such as Eternal Ltd. and One 97 Communications Ltd., which owns Paytm.

Focus On Domestic Sectors

Helios has also increased allocations to several domestic sectors. These include:

• Financial services

• Capital goods

• Defence

• Power infrastructure

• Electronic manufacturing services

• Consumer companies

According to Arora, some of the concerns that had weighed on India are beginning to fade. He cited stable crude oil prices and the possibility of stronger foreign inflows, particularly into the bond market, as factors that could support the economy and financial markets.

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