Adani promoters sell stakes worth Rs 15,446 crore to GQG Partners

Group may use the proceeds to retire debt

The promoters of the Adani group on Thursday sold shares worth Rs 15,446 crore in four of its listed entities to GQG Partners, a US-based global equity-investment boutique firm.

The promoters plan to use the proceeds to retire debt and for other purposes. They sold shares in Adani Enterprises worth Rs 5,460 crore, and those worth Rs 5,282 crore in Adani Ports & SEZ.

They also sold shares worth Rs 2,806 crore in Adani Green Energy and Rs 1,898 crore in electricity distributor Adani Transmission (see chart). Following the sale, shares of all listed companies of the group surged, with Adani Enterprises closing 2.7 per cent up at Rs 1,607.

“I am excited to have initiated positions in the Adani companies. Adani companies own and operate some of the largest and most important infrastructure assets throughout India and around the world. Gautam Adani is widely regarded as among the best entrepreneurs of his generation. We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India’s economy and energy infrastructure, including their energy transition over the long-run,” said Rajiv Jain, chairman and chief investment officer, GQG Partners.

Jugeshinder Singh, chief financial officer of the Adani group, said the conglomerate valued GQG’s role as a strategic investor in its infrastructure and utility portfolio of sustainable energy, logistics, and energy transition.

“This transaction marks the continued confidence of global investors in the governance, management practices and the growth of the Adani portfolio of companies,” Singh said.

GQG is one of the world’s leading investors in global and emerging markets, and manages more than $92 billion as of January this year.

Listed on the Australian Stock Exchange, GQG Partners is investing in Adani firms that own and operate the largest airport and port platform in India, and India’s largest private-sector transmission and distribution platform that will generate 9 per cent of the country’s renewable energy capacity by 2030, a statement by the group said.

“The block deals point to some trades between foreign institutional investors or promoters because only they hold such large amounts of shares,” said Deepak Jasani, head of retail research at HDFC Securities.

“In the meantime, the negative news flow for the group has reduced and some investors may be finding valuations attractive at this point.”

Adani Enterprises has now surged almost 35 per cent in three sessions through Thursday as the embattled group conducted investor meetings in Singapore and Hong Kong this week to shore up confidence.

The 10 listed companies of the group have added about $12.2 billion in market value in three sessions to Thursday, trimming the combined loss since Hindenburg’s January 24 report to nearly $141 billion.

“These block deals are a clear indication that institutional buyers are coming into play,” said Kishor Ostwal, chief executive officer of Mumbai-based investment advisory firm CNI Research.