For $15,446 million, Adani Group sells a stake to GQG Partners in the US.
The Adani Group’s promoters sold shares in four publicly traded companies to GQG Partners, a US-based boutique global equity investment firm, for Rs 15,446 crore.
The promoters want to use the proceeds to pay off debt. Shares in Adani Enterprises and Adani Ports & SEZ were sold for a combined total of Rs 5,460 billion and Rs 5,282 billion.
Also, they sold interests in Adani Green Energy and Adani Transmission for a combined total of Rs. 2,806 billion and Rs. 1,898 billion (see chart). Following the acquisition, shares of all the group’s publicly traded firms increased, with Adani Enterprises closing 2.7% higher at Rs 1,607.
I’m excited to have begun positions with Adani enterprises. Adani Enterprises owns and manages some of the largest and most important infrastructure facilities in India and the world.
Gautam Adani is regarded by many as one of the most outstanding businesspeople of his age. We are pleased to invest in companies supporting India’s long-term energy transition, economy, and infrastructure. These companies have promising long-term growth possibilities. The chairman and chief investment officer of GQG Partners is Rajiv Jain.
The Adani group cherishes GQG’s role as a strategic investor in its infrastructure and utilities portfolio of renewable energy, logistics, and energy transformation, according to Jugeshinder Singh, the company’s chief financial officer.
Singh continued, “This transaction demonstrates the ongoing confidence of foreign investors in the governance, management principles, and expansion of the Adani portfolio of firms.
GQG was one of the most prominent global investors in emerging and foreign markets as of January of this year, managing more than $92 billion. GQG Partners, a US-based investment management firm, specialises in active equities solutions for organisations and high-net-worth individuals.
The business was founded in 2016 by Rajiv Jain, a former portfolio manager at Vontobel Asset Management and a senior management team member at Credit Suisse Asset Management.
GQG Partners invests in elite companies with long-term development potential, dominant market positions, and stable financials to give investors long-term risk-adjusted returns. The corporation uses a fundamental, bottom-up approach when selecting equities, emphasising individual company analysis over macroeconomic factors or market trends.
One or more of GQG Partners’ most well-known investment strategies is global equity, including emerging markets and international equity. The company also offers specialised solutions to meet each client’s ininvestmentbjectives and risk tolerance.
GQG Partners controlled about $90 billion in assets as of September 2021 from locations in Florida, London, and Sydney. The organisation has received numerous awards and accolades for the excellence of its client service and investment outcomes.
The largest private-sector transmission and distribution platform in India, as well as the largest airport and port platform, are owned and operated by Adani companies, which, according to a statement from the group, will produce 9% of the country’s renewable energy capacity by 2030. GQG Partners, listed on the Australian Stock Exchange, invests in Adani companies.
According to Deepak Jasani, head of retail research at HDFC Securities, the block sales “hint to some trades between overseas institutional investors or promoters” because only they possess such substantial shares.
Some investors may find the values tempting since the group’s unfavourable news flow has subsided. Adani Enterprises has already climbed by about 35% in three sessions on Thursday, despite the struggling business holding investor meetings in Singapore and Hong Kong this week to rebuild trust.
In the three sessions before Thursday, the market value of the group’s ten publicly traded companies rose by almost $12.2 billion, bringing the whole loss since Hindenburg’s January 24 report down to approximately $141 billion.
Kishor Ostwal, CEO of Mumbai-based financial consulting company CNI Research, stated that these block sales are a “strong indicator” that institutional buyers are entering the market.
Adani shares
An Indian economic conglomerate known as the Adani Group has interests in a wide range of industries, including ports, transportation, power generation, renewable energy, agribusiness, and mining. Gautam Adani founded the company in 1988, and since then, it has become one of the largest in India.
Some of the more prominent companies that make up the Adani Group are Adani Gas Ltd., Adani Power Ltd., Adani Transmission Ltd., Adani Green Energy Ltd., and Adani Ports and Special Economic Zone Ltd. The organisation has expanded globally and has offices in countries like Australia, Indonesia, and the United States.
The Adani Group has recently faced criticism and controversy for its business practices, including accusations of environmental infringement, human rights abuse, and tax fraud. Notwithstanding these challenges, the company is still expanding and investing in new regions to dominate the Indian renewable energy sector.
Shares of Adani Group companies rose after the block deals, which some analysts viewed as a change in how investors view the holdings of the ports-to-power conglomerate.
Adani Wilmar shares jumped 4.99%, Adani Transmission shares rose 5%, Adani Green Energy shares rose 4.99%, and Adani Power shares rose 4.98%. NDTV, Ambuja Cements, and Adani Total Gas all experienced gains of 4.96, 4.94, and 4.41 per cent, respectively, on the BSE.
The share price of Adani Enterprises rose by 2.69 per cent, Adani Ports by 3.50 per cent, and ACC by ACC (1.50 per cent). The market value of the ten companies as of Thursday’s closing of business was $7.86 lakh crore.
The ten listed businesses’ combined market value rose by 74,302.47 crores in just two trading sessions.
According to Deepak Jasani, Head of Retail Research at HDFC Securities, “Adani group stocks ended in the positive after a series of bulk transactions in some of them and a Supreme Court order directing the SEBI to investigate allegations raised in PILs in the Adani group matter and also appointing a six-member panel for assessing whether there has been a regulatory failure in this situation.
edited and proofread by nikita sharma
