GQG Partners' investment in Adani Green Energy soars 100% in 15 days

Imvestment made by GQG Partners in Adani Green Energy have fetched the Australia-based asset management company over 100 per cent returns in just 15 trading sessions. GQG Partners have earned over Rs 2,900 crore or 104 per cent during the period.

At 02:07 PM, AGEL was locked in 5 per cent upper circuit at Rs 1,031.55 amid heavy volumes. Average trading volumes on the counter jumped over three-fold, with a combined 13.4 million shares having changed hands on the NSE and BSE till the time of writing of this report. There are combined pending buy orders for around 300,000 shares on both the exchanges.

On March 2, GQG Partners had bought 55.6 million equity shares of AGEL, worth Rs 2,806 crore, at a price of Rs 504.60 per share through bulk deal transactions on National Stock Exchange (NSE). Based on current price, the investment is now worth Rs 5,735 crore, up 104 per cent or Rs 2,930 crore over the acquisition price.

Meanwhile, from its 52-week low level of Rs 439.35, hit on February 28, 2023, the stock has appreciated 135 per cent. However, AGEL is still quoting 66 per cent lower from its all-time high price of Rs 3,048, touched on April 19, 2022.

Along with AGEL, GQG Partners had invested Rs 15,446 crore ($1.87 billion) cumulatively in Adani Ports and Special Economic Zone (APSEZ), Adani Transmission (ATL) and Adani Enterprises (AEL).

Based on current price, total investments in these four companies are valued at Rs 21,986 crore, up 42 per cent or Rs 6,539 crore over the purchased price. GQG Partners' investment in ATL has surged by 70 per cent, followed by AEL (31 per cent), and APSEZ (10.8 per cent).

GQG is investing in Adani Portfolio companies, which owns and operates the largest airport and port platform in India, and is the largest private sector transmission and distribution platform in India and that will generate around 9 per cent of India's renewable energy capacity by 2030.

AGEL is a renewable energy platform from the Adani Portfolio. The company has one of the world’s largest renewable portfolios, with locked-in growth of 20.4 gigawatt (GW) across operational, under-construction (UC), awarded, and acquired assets, catering to investment-grade counterparties.

Moreover, the company develops, builds, owns, operates, and maintains utility-scale grid-connected solar, and wind farm projects. AGEL is focused on decarbonisation of power generation and is helping India meet its sustainability goals.

A sustained reduction in the net leverage, reasonable certainty on future debt tie-ups of debt and equity funding, successful and timely completion of UC projects, and stabilisation of assets with sound operating parameters enabling cash flow upstreaming at the holdco could lead to an Outlook revision back to Stable, India Ratings and Research (Ind-Ra) said in rating rationale.

On March 7, Ind-Ra revised AGEL's outlook to 'Negative' from 'Stable', while affirming the long-term issuer rating at 'IND A+'.

The promoters have raised $1.87 billion from GQG Partners Inc. to shore up its liquidity buffers. However, given the commitment at the promoter level to deleverage and retire the outstanding loan against shares, Ind-Ra would continue to monitor the ability of the promoters to infuse further equity for the UC projects and towards working capital requirements as required, the rating agency had said.