GQG Increases Stake In Adani Ports To More Than 5%, Total Investment In Adani Firms Stands at Rs 38,700 Crore

The investment comes as an indication of the US-based investment firm’s faith in the Adani group in the aftermath of the Hindenburg report. 

GQG increased its stake in Adani Ports by way of a bulk deal and the firm now has a stake in 5 out of the 10 Adani Group firms.

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Investment firm GQG Partners bought additional stake in Adani Ports & Special Economic Zone (APSEZ) on Thursday, taking the company’s total investment in the firm from 4.93 per cent to 5.03 per cent. The investment comes as an indication of the US-based investment firm’s faith in the Adani group in the aftermath of the Hindenburg report. 

According to a PTI report, GQG increased its stake in Adani Ports by way of a bulk deal and the firm now has a stake in 5 out of the 10 Adani Group firms. Earlier, GQG purchased a 7.73 per cent stake in Adani Power Ltd on August 16. post-sale , promoter holdings in Adani Power fell from 74.97 per cent to 66.88 per cent. 

Notably, Deloitte quit as the auditor of APSEZ recently reigniting investor concerns about the group’s recovery from the aftereffects of the Hindenburg Research report. 

Earlier in January, the US-based Hindenburg released a report alleging accounting fraud, stock price manipulation, and improper use of tax havens, leading to a stock market drop that erased almost $150 billion from the market. While the Gautam Adani-led group has denied all allegations, it is planning a comeback by recasting it’s ambitions, scaling back spending on new projects, and many more tactics, the report cited. 

At such a time, the investments by GQG have come as a backing for the company in the face of market concerns. GQG has been investing in Adani firms since May. Earlier, it bought a 5.4 per cent stake in Adani Enterprises, a 6.54 per cent stake in Adani Green Energy Ltd., and a 2.5 per cent stake in Adani Transmission Ltd. GQG’s total investment in Adani Group firms now stands at Rs 38,700 crore. 

Apart from stake sale by promoters, the three portfolio companies have been approved by the board ‘for primary issuances through a share sale to investors’. Through the share sale, Adani Enterprises aims to raise Rs 12,500 crore, while Adani Transmission and Adani Green Energy plan to raise Rs 8,500 crore and Rs12,300 crore respectively.

The share sale is coming months after Adani Enterprises had to abort the Rs 20,000 crore Follow-on Public Offering (FPO) in the aftermath of the Hindenburg report. While the offer was full subscribed, the company issued refunds to the subscribers. The company plans to use the raised funds to pare debt and fund it’s expansion projects, the report noted.