- GQG Partners and other investors bought 31.2 crore shares of Adani Power in a block deal – one of the largest ever secondary market equity transactions
- Worldwide Emerging Market sold its stake at ₹279.16 apiece, while Afro Asia sold stake at ₹279.18 a share
- Adani Power is the fourth firm of the ports-to-energy conglomerate where GQG has invested since May
NE BUSINESS BUREAU
AHMEDABAD, AUG 16
Reposing faith in Adani Group’s corporate governance, US-based boutique investment firm GQG Partners along with other investors on Wednesday bought an 8.1 per cent stake in Adani Power Ltd for over ₹9,000 crore (USD 1.1 billion).
Two Adani group promoter entities sold over 31 crore shares or over 8 per cent equity of Adani Power on Wednesday in two large block deals on the BSE, exchange data showed. The sellers were Mauritius-based Worldwide Emerging Market Holding, which held a 5 per cent stake in the company as of June-end, and Afro Asia Trade and Investments Ltd that held a 6.88 per cent stake.
The data also showed that GQG Partners and an affiliate fund bought 15.2 crore shares or nearly 4 per cent of its equity for ₹4,243 crore at ₹279.15 each. Sources said that GQG Partners, which is making its first investment in the company, has picked up the entire 8 per cent stake.
Worldwide Emerging Market sold its stake at ₹279.16 apiece, while Afro Asia sold stake at ₹279.18 a share.
Adani Power is the fourth firm of the ports-to-energy conglomerate where GQG has invested since May.
GQG Partners Emerging Markets Equity Fund and Goldman Sachs Trust II-Goldman Sachs GQG Partners Intl Opportunities Fund bought 15.2 crore shares at Rs 279.15 apiece, according to the stock market data.
The US-based investment firm, which started investing in the Adani Group in early March when the group was reeling under damaging allegations made by short-seller Hindenburg Research, has been increasing its stake in group companies.
GQG had previously picked up a 5.4 per cent stake in Adani Enterprises, a 6.54 per cent stake in Adani Green Energy Ltd and a 2.5 per cent stake in Adani Transmission Ltd.
Adani Power is one of India’s strategic energy and power producer.
The transaction is the first of its kind in India between an investor and a promoter group.
Sources said the investment highlights the intrinsic strength of Adani Group’s diversified business ventures but also stands as an endorsement of the Group’s commitment to the highest standards of governance. Furthermore, the success of this investment programme underscores the Group’s unparalleled ability to raise substantial funds seamlessly across all its portfolio of companies.
Hindenburg Research, in a bombshell report in January, alleged accounting fraud and stock price manipulation at the group, triggering a stock market rout that had erased about USD 150 billion in its market value at its lowest point.
Adani Group has denied all allegations by Hindenburg and is plotting a comeback strategy that includes recasting its ambitions, scrapping acquisitions, pre-paying debt to address concerns about its cash flows and borrowings, and scaling back its pace of spending on new projects.
In March, promoters sold stakes worth Rs 15,446 crore (USD 1.87 billion) in group companies to GQG Partners. GQG ramped up that investment with an additional purchase of shares worth USD 400-500 million in May.
Adani family had raised USD 1.38 billion (Rs 11,330 crore) through stake sale in the three portfolio companies – Adani Enterprises Ltd, Adani Green Energy Ltd and Adani Transmission Ltd.
In addition, the three portfolio companies have received board approvals for primary issuances through a share sale to investors.
Adani Enterprises Ltd plans to raise Rs 12,500 crore through share sale to investors while Adani Transmission plans to mop up Rs 8,500 crore. Adani Green Energy plans to raise Rs 12,300 crore.
Investments have been in key Adani group firms that are linked to India’s ongoing energy transition. Adani Enterprises is incubating the green hydrogen projects while Adani Green Energy is the renewable energy arm that is building 45 GW of capacity by 2030. Adani Transmission lays lines to wheel such power.
