The Adani family has recently sold shares worth slightly over $1 billion (Rs 8,372 crore) in two of their group companies through secondary transactions on the stock exchanges. The stocks were acquired by US-based, Australia-listed GQG Partners, and the funds raised will be utilized to bolster liquidity and strengthen the balance sheet. This move aims to restore investor confidence following Hindenburg Research’s report on the Adani Group’s business practices, which caused a significant decline in market capitalization.
GQG Partners, founded by India-born Rajiv Jain and Tim Carver in June 2016, has invested in Adani Group companies on two previous occasions. With a total of $92 billion under management earlier this year, the asset manager now holds stakes of 6.32% in Adani Green Energy, 4.96% in Adani Enterprises, 4.1% in Adani Ports, and 2.45% in Adani Transmission. On this occasion, GQG purchased shares of Adani Green Energy and Adani Enterprises, further boosting the conglomerate’s stock market rally.
According to bulk deal disclosures on the NSE, the S B Adani Family Trust sold 1.6% of flagship Adani Enterprises for Rs 4,140 crore, while Infinite Trade & Investment sold 2.9% of Adani Green Energy for Rs 4,232 crore. The shares were sold at a discount to their closing prices.
In March of this year, GQG initially invested in Adani Green Energy and Adani Enterprises, purchasing shares worth $640 million and $330 million, respectively, from the promoter family. Additionally, they bought shares worth $900 million of Adani Ports and Adani Transmission. Later, GQG acquired Adani Group stocks, including Ambuja Cements, from the open market. The recent investment by GQG brings their total investment in the Ahmedabad-based conglomerate to over $3.5 billion.
GQG’s chairman and chief investment officer, Rajiv Jain, previously expressed their intention to become one of the largest investors in the Adani Group, second only to the family itself, depending on the valuation. This investment follows the approval of a $2.5-billion (Rs 21,000-crore) fund-raise plan through share issuances to qualified institutional investors by the boards of Adani Enterprises and Adani Transmission in May.
