The promoters of the Adani group have raised Rs 15,446 crore or $1.87 billion by selling stakes in four companies to GQG Partners, a US-based equity investment firm.
S.B. Adani Family Trust, which is classified as a promoter entity, sold shares in Adani Enterprises, Adani Ports & Special Economic Zone, Adani Transmission Ltd and Adani Green Energy Ltd. The trust has also reportedly sold shares to Goldman Sachs.
GQG Partners picked up 3.87 crore shares or 3.39 per cent of Adani Enterprises at Rs 1,410.86 per share for a consideration of Rs 5,460 crore. It purchased 8.86 crore shares (4.10 per cent) of Adani Ports at Rs 596.20 for Rs 5,282 crore.
The investment firm acquired 2.84 crore shares (2.54 per cent) of Adani Transmission at Rs 668.40 per share for Rs 1,898 crore. GQG bought 5.56 crore shares (3.51 per cent) of Adani Green for Rs 2,806 crore. The shares were purchased at a price of Rs 504.60.
All these transactions were done through a series of secondary block deals on the BSE and the NSE. According to Money Control, Goldman Sachs has purchased 2.2 crore shares of Adani Green Energy for Rs 504.60. A statement from the Adani group said GQG had become a key investor in the development and growth of critical infrastructure of the country.
“We are delighted to complete this landmark transaction with GQG. We value GQG’s role as a strategic investor in our 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,’’ Jugeshinder (Robbie) Singh, group CFO of Adani Group, said.
“We believe that the long-term growth prospects for these companies are substantial,” said Rajiv Jain, GQC’s chairman and chief investment officer. Jefferies India Pvt Ltd acted as the sole broker for these deals.
GQG Partners is a global equity investment boutique firm and it manages more than $92 billion in client assets as of January 31, 2023. It is listed on the Australian Securities Exchange and is majority owned by its employees.
Headquartered in Ft. Lauderdale Florida, the firm has offices in New York, London, Seattle and Sydney. Earlier in the day, the stock exchanges had reported heavy block deals in these four counters.
News of the transactions drove up shares of the conglomerate and all the 10 listed firms finished in the green for the second consecutive session on Thursday. Market circles said that the transaction with GQG Partners is positive for the Adani group at least in the immediate term, barring any negative news development.
It strengthens the family’s liquidity position finance which would allow them to bring down debt backed by shares. There are institutions that are willing to invest in the group at the right value.
The Adani group stocks have lost trillions in market value since the report by Hindenburg Research which alleged share manipulation and accounting fraud.
