Sunil Singhania’s Abakkus Mutual Fund exited Vedanta, Malco Energy, and Vedanta Iron & Steel in June while increasing exposure to Vedanta Aluminium. The Small Cap Fund also initiated new stakes in Saregama India and Kewal Kiran Clothing. These changes reflect portfolio restructuring following the Vedanta group’s recent demerger process.
In June, Abakkus Mutual Fund carried out significant adjustments to its portfolio, focusing primarily on the reshuffling of its Vedanta group holdings following the conglomerate's demerger. The Rs 5,301-crore Abakkus Flexicap Fund and the Rs 1,494-crore Abakkus Small Cap Fund both exited their positions in Vedanta, Malco Energy, and Vedanta Iron & Steel. In total, the two schemes sold 16 lakh shares of each of these three entities.
While moving out of the parent entity and certain steel and energy segments, the funds concurrently increased their bets on Vedanta Aluminium. The Flexicap Fund purchased 9.5 lakh shares of the aluminium unit, while the Small Cap Fund added 3.5 lakh shares. This shift suggests a strategic preference for the aluminium business within the group’s post-demerger structure. The various entities, including Vedanta Aluminium Metal, Oil & Gas, Power, and Iron & Steel, had recently debuted on the stock exchanges on June 15.
New Additions and Portfolio Adjustments
Beyond the Vedanta group, the Abakkus Small Cap Fund initiated fresh investments in two companies. It acquired 4.5 lakh shares of the music and media firm Saregama India, which now makes up 1.5 percent of its portfolio. Additionally, it bought 1.4 lakh shares of apparel retailer Kewal Kiran Clothing, accounting for 0.5 percent of the fund's holdings.
The funds also utilized the month to increase their existing stakes in several large and mid-cap companies. The Small Cap Fund expanded its holdings in 53 stocks, with notable additions including 48.5 lakh shares of Talwandi Sabo Power, 3.3 lakh shares of Emmvee Photovoltaic Power, and 1.3 lakh shares of Century Plyboards. It also increased its exposure to banking majors, adding 1.2 lakh shares of HDFC Bank and 1 lakh shares each of State Bank of India and Rallis India.
The Flexicap Fund similarly bolstered its positions in 28 existing stocks. Its notable additions included 1.2 crore shares of Talwandi Sabo Power, 10.5 lakh shares of HDFC Bank, 4.9 lakh shares of Leela Palaces Hotels & Resorts, and 4 lakh shares of ICICI Bank. Both funds showed a minor reduction in their exposure to Avalon Technologies, with the Small Cap Fund selling 20,000 shares and the Flexicap Fund offloading 2.2 lakh shares.
Investors tracking these moves should note the fund’s overall allocation strategies. As of the end of June, the Small Cap Fund maintained 88.8 percent of its assets in equities across 61 stocks, while the Flexicap Fund held 93.3 percent in equities across 45 stocks. Future updates from the fund regarding their position in these new holdings, as well as any further changes to their Vedanta group exposure, will be the next key monitorable for market participants.