Adani sells shares in Adani Power to GQG Partners, others for $1 bn

Australia-listed investment firm GQG Partners on Wednesday invested $1.1 billion (Rs9,000 crore) in Adani Power by buying an 8.1 per cent stake from the Adani family via multiple block deals.
 

With this investment, GQG Partners has bought Rs34,000 crore ($4.2 billion) worth of shares in Adani group companies since March this year. Interestingly, the move comes days after Qatar Investment Authority, a sovereign fund, picked up a 2.7 per cent stake in Adani Green Energy for Rs3,920 crore.
 

Adani Power’s shares closed 2.2 per cent lower to settle at Rs279.30 apiece on the BSE.
 

This historic trade, marked as the largest block between a single buyer and a single seller in Indian history, a stock exchange transaction of 31 crore shares, representing 8.1 per cent of Adani Power's total equity, said a banker close to the development.
 

"The success of this investment programme underscores the Group's unparalleled ability to raise substantial funds seamlessly across all its portfolio of companies," they said.
 

The proceeds will be used by the Adani group to reduce its debt and for other general corporate purposes.
 

GQG Partners is always known for taking contrarian bets and its assets under management are worth close to $100 billion.  It holds about $13 billion in Indian companies including ITC, Sun Pharmaceutical Industries, State Bank of India, ICICI Bank and Housing Development Finance Corp (now merged with HDFC Bank).

In March this year, GQG Partners first acquired almost $2 billion worth of shares in four of Adani’s firms.

In May, it raised its stake in the Adani Group by about 10 per cent by buying shares from the market.

Two months ago, GQG Partners and other investors bought around $1 billion of additional stake in Adani Transmission.

Bankers said at the core of these milestone investments is the broader narrative of India's ongoing energy transition. As the economy strides ahead, the role of thermal power remains pivotal in bolstering India’s energy security.  Bankers said that as global conversations around sustainable energy grew louder, it was essential to recognise the continued relevance of thermal energy within the larger mosaic of energy sources.
 

Furthermore,  bankers said Adani Power's 360-degree energy suite encompasses renewables, power generation, transmission, gas, and more, reflecting a well-rounded perspective on India's energy landscape.
 

India stands at a crucial juncture, balancing its colossal energy demands with global sustainability commitments, they said.

In this context, companies like Adani Power, with their expansive and diversified portfolios, play a critical role.
 

Adani Power has recently commissioned the 1.6 GW ultra-supercritical Godda power plant and is now supplying power to Bangladesh, marking the group’s entry into transnational power projects.
 

Their ventures span the entire gamut of the energy sector, reaffirming the importance of a diversified approach to ensure energy security and sustainability, they added.
 

An adverse report by US-based short seller Hindenburg Research in January this year resulted in group shares losing substantial market capitalisation but the shares recovered after the Adani family sold part of their shares in various group companies and prepaid part of their debt.