Adani-led promoter group ups stake in flagship firm AEL to 69.87%
In recent developments, the promoter group Kempas Trade and Investment Ltd, which is controlled by billionaire Gautam Adani, has increased its stake in Adani Enterprises, the flagship company of the Adani Group. This move comes as the Adani conglomerate is recovering from the impact of a critical report issued by the US-based short-seller, Hindenburg Research.
According to an exchange filing on August 21, Kempas Trade and Investment Ltd has raised its stake from 67.65 percent to 69.87 percent. The promoter group acquired an additional 2.22 percent of the company’s shares through open market transactions between August 7 and August 18.
This increase in ownership stake suggests the promoter group’s confidence in Adani Enterprises and its long-term prospects, despite the scrutiny and challenges the group has faced. As with any investment decision, market dynamics, company performance, and investor sentiment all play a role in influencing such actions.
On August 21, the combined market capitalization of the stocks within the Adani Group reached a significant milestone, surpassing the Rs 11 lakh crore mark to reach Rs 11.29 lakh crore. This achievement marked a six-month high for the conglomerate’s market valuation.
The remaining 31 percent of the ownership is held by public shareholders. Among these public shareholders, US-based investor GQG owns 2.67 percent of the company, while LIC (Life Insurance Corporation of India), one of India’s largest domestic institutional investors, holds a stake of 4.26 percent in the company.
The rise in market capitalization reflects the investor sentiment towards the Adani Group and its various constituent companies. The valuation of a conglomerate like Adani Group is influenced by a variety of factors, including company performance, economic conditions, industry trends, and investor confidence.
As market conditions and sentiments can be dynamic, it’s important to rely on reliable financial news sources for the latest updates on market capitalization, stock performance, and any relevant developments related to the Adani Group and its individual companies.
Despite the corporate governance allegations made by the US-based short seller, GQG Partners has defied market sentiments and actively invested in Adani Group stocks. This decision is notable given the critical report issued by the short seller, which had raised concerns about the group’s practices.
In March, GQG Partners injected over Rs 15,000 crore into the group by acquiring stakes in four Adani companies, including Adani Enterprises. In June, the firm further demonstrated its confidence by purchasing an additional $1 billion (approximately Rs 8,265 crore) worth of stakes in Adani Enterprises and Adani Green Energy, both of which are key entities within the group.
GQG Partners now holds stakes in five out of the ten Adani Group firms. Furthermore, on August 16, the firm acquired a 7.73 percent stake in Adani Power Ltd. In a parallel move, promoter group companies Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09 percent stake in Adani Power through block deals on the same day.
These investments by GQG Partners reflect the firm’s independent assessment and strategic approach to the market. Despite concerns raised by external parties, such as the short seller’s allegations, GQG Partners has actively engaged with Adani Group stocks and businesses.
As always, market dynamics can change rapidly, and it’s crucial to stay informed through reliable financial news sources for the latest updates on investor activities, market movements, and related developments.
GQG Partners’ recent investment in Adani Power is worth noting. The firm acquired a 7.73 percent stake in Adani Power, as confirmed by stock exchange filings. This investment led to a reduction in the promoter holding in Adani Power, which dropped from 74.97 percent to 66.88 percent.
This investment decision comes in the wake of Deloitte resigning as the auditor of Adani Ports & Special Economic Zone (APSEZ). This event has rekindled investor concerns, even as the Adani Group works to recover from the impact of a critical report by Hindenburg Research.
In January, Hindenburg Research had made allegations of “brazen stock manipulation and accounting fraud” against the Adani conglomerate. In response, the Adani Group strongly refuted these claims, characterizing the report as “a calculated attack on India.”
GQG Partners’ continued investment in the Adani Group, even amid these challenges, demonstrates its confidence and strategic approach to its investment decisions. The dynamics of investor sentiments and market perceptions can be complex and subject to rapid changes, highlighting the importance of staying informed through reliable financial news sources for the latest updates and developments.
