Adani Power shares jumped over 3 per cent in morning trade on Thursday after US-based boutique investment firm GQG Partners along with other investors bought an 8.1 per cent stake in the company for over Rs 9,000 crore ($1.1 billion). The stock gained 3.27 per cent to Rs 288.45 on the BSE, while at the NSE, it rose 3 per cent to Rs 288.50 a piece. Several companies under Adani Group were also trading in the green during morning deals, including Adani Enterprises, Adani Transmission, Adani Wilmar, and NDTV.
GQG Partners along with other investors on Wednesday bought an 8.1 per cent stake in Adani Power Ltd for over Rs 9,000 crore, as the marquee investor shrugged off the damning report of a US-based short-seller, to invest in billionaire Gautam Adani's Group. GQG Partners and other investors bought 31.2 crore shares of Adani Power in a block deal, one of the largest ever secondary market equity transactions, according to the stock market data.
Adani Power is the fourth firm of the ports-to-energy conglomerate where GQG has invested since May. Promoter Adani family, which held 74.97 per cent in the firm, sold 31.2 crore or an 8.1 per cent stake at an average price of Rs 279.17 per share.
The US-based investment firm, which started investing in the Adani Group in early March when the group was reeling under damaging allegations made by short-seller Hindenburg Research, has been increasing its stake in group companies.
Adani family had raised $1.38 billion (Rs 11,330 crore) via stake sale in the three portfolio companies, Adani Enterprises Ltd, Adani Green Energy Ltd, and Adani Transmission Ltd. In addition, the three portfolio companies have received board approvals for primary issuances through a share sale to investors. Adani Enterprises plans to raise Rs 12,500 crore through share sale to investors while Adani Transmission plans to mop up Rs 8,500 crore. Adani Green Energy plans to raise Rs 12,300 crore.
Investments have been in key Adani Group firms that are linked to India's ongoing energy transition. Adani Enterprises is incubating the green hydrogen projects while Adani Green Energy is the renewable energy arm that is building 45 GW of capacity by 2030. Adani Transmission lays lines to wheel such power.