The promoter group led by billionaire Gautam Adani has boosted its share in two of the company’s publicly traded companies as the ports-to-energy conglomerate continues to develop a strategy to recover after being hammered by negative headlines.
According to stock exchange records, the promoter group boosted their ownership of flagship Adani Enterprises from 69.87% to 71.93%.
The promoters have increased their interest in the company’s main incubator unit a second time in less than a month. The promoters’ ownership in Adani Enterprises Ltd. climbed from 67.65% to 69.87% last month.
According to the documents, the promoter group also boosted its ownership of Adani Ports and Special Economic Zone Ltd from 63.06% to 65.23%.
In open market transactions, Resurgent Trade and Investment Ltd purchased nearly a 1% interest in Adani Ports and Special Economic Zone Ltd, and Emerging Market Investment DMCC purchased another 1.2%. They are both promoter group companies.
In the case of Adani Enterprises Ltd., Kempas Trade and Investment Ltd. and Infinite Trade and Investment Ltd. purchased the shares. According to the documents, between August 14 and September 8, open market transactions were used to purchase the stakes.
GQG purchased shares in Adani group
The US-based boutique investment firm GQG Partners purchased shares in Adani group companies a few weeks before the increase in ownership.
In a bulk transaction last month, GQG expanded its ownership of Adani Ports & Special Economic Zone (APSEZ) to 5.03%, according to stock exchange documents.
Presently, GQG owns a stake in five of the ten Adani Group companies.
Promoter group companies Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09% stake in Adani Power through block agreements on August 16. On the same day, it acquired a 7.73% stake in Adani Power Ltd.
According to disclosures, GQG purchased 7.73% of this. Promoters’ ownership of Adani Power dropped from 74.97% to 66.88% following the stock sale.
In a study published on January 24, American short-seller Hindenburg Research accused the Adani group of accounting fraud, stock price manipulation, and inappropriate use of tax havens. This led to a stock market crash that, at its worst, had destroyed roughly USD 150 billion from the market’s worth.
All of Hindenburg’s allegations have been disputed, and Adani Group is putting together a recovery plan that includes reframing its objectives, giving up acquisitions, paying off debt in advance to ease concerns about its cash flows and borrowings, and decreasing the rate at which it invests in new projects.
However, since May, GQG has kept making investments in Adani companies despite the allegations. GQG has previously invested 5.4%, 6.54%, and 2.5%, respectively, in Adani Enterprises, Adani Green Energy Ltd., and Adani Transmission Ltd. Since then, Adani stocks have partially made up for the losses.
Up to this point, GQG has invested 38,700 crore in Adani Group companies. Adani Green Energy has received investments totaling $4,100 crore from the Qatar Investment Authority (QIA) and $1,440 crore from Bain Capital, helping to restore investor trust.
In addition to promoter stake sales, the three portfolio companies were able to get board authorization for principal issuances by selling shares to investors.
Adani Transmission hopes to collect $8,500 billion, while Adani Enterprises hopes to generate $12,500 billion through the sale of shares to investors.
The goal of Adani Green Energy is to raise $12,300 crore. Adani Enterprises is developing the green hydrogen projects, and its renewable energy business, Adani Green Energy, is putting up 45 GW of capacity by 2030.