Adani Power witnessed a surge of over 3 percent in morning trade on Thursday, driven by the acquisition of an 8.1 percent stake worth more than Rs 9,000 crore ($1.1 billion) by US-based boutique investment firm GQG Partners and other investors.
The stock rose by 3.27 percent to Rs 288.45 on the BSE and 3 percent to Rs 288.50 on the NSE. Other Adani Group companies, such as Adani Enterprises, Adani Transmission, Adani Wilmar, and NDTV, also demonstrated positive trading trends in the morning.
GQG Partners, in collaboration with other investors, made a significant purchase, acquiring an 8.1 percent stake in Adani Power Ltd for a sum exceeding Rs 9,000 crore. This move showcased confidence in the Adani Group, even amidst negative reports from a US-based short-seller. The acquisition involved a block deal for 31.2 crore shares, marking one of the most substantial secondary market equity transactions in history, according to stock market data.
Adani Power Witnesses Over 3% Surge in Shares, Multiple Group Companies Trade Positively
Adani Power is now the fourth company within the conglomerate – with interests spanning from ports to energy – to attract GQG’s investment since May. The Adani family, which initially held 74.97 percent ownership in the firm, sold 31.2 crore shares, equivalent to an 8.1 percent stake, at an average price of Rs 279.17 per share.
GQG Partners, a US-based investment firm, initiated its involvement with the Adani Group in early March, defying challenging allegations from short-seller Hindenburg Research. Over time, the investment firm has progressively increased its holdings in various group companies.
Significantly, the Adani family raised approximately $1.38 billion (Rs 11,330 crore) through stake sales in three portfolio companies: Adani Enterprises Ltd, Adani Green Energy Ltd, and Adani Transmission Ltd. Additionally, these three portfolio firms obtained board approvals for primary issuances via share sales to investors. Adani Enterprises aims to raise Rs 12,500 crore through share sales, while Adani Transmission and Adani Green Energy intend to raise Rs 8,500 crore and Rs 12,300 crore, respectively.
These strategic investments are centered around key entities within the Adani Group, crucial players in India’s ongoing energy transition. Adani Enterprises is actively nurturing green hydrogen projects, Adani Green Energy is driving the renewable energy arm with ambitious targets of achieving 45 GW of capacity by 2030, and Adani Transmission is expanding power transmission infrastructure to facilitate the distribution of renewable energy.