Mumbai: On Wednesday, the Adani family sold shares of Adani Power for more over Rs 8,700 crore ($1.1 billion) through secondary transactions. About half of the shares were purchased by S-based GQG Partners, who since early March had invested nearly Rs 35,000 crore ($4.2 billion) in a number of Adani enterprises.
Adani Power is the conglomerate’s fifth firm that GQG has invested in as a result of Hindenburg’s allegations against the organisation. As of the company’s co-founding in June 2016, Rajiv Jain, an Indian-born co-founder, managed $92 billion in assets. On the Australian Stock Exchange, GQG is traded. In addition to Adani Power, it also holds stock in Adani Enterprises, Adani Green, Adani Transmission, and Adani Ports.GQG also owns shares of Ambuja Cements, albeit it acquired those shares on the open market, in addition to the five stocks, which it primarily acquired through the promoter family.
According to bulk sale statements on the two bourses, Worldwide Emerging Market investment sold 1.2% of Adani Power for Rs 1,300 crore, and Afro Asia Trade and Investments sold its entire 6.9% investment for Rs 7,400 crore.
The price at which the shares was sold was similar to the BSE’s closing price of Rs 279 on Wednesday. The largest coal-fired power plant in the country, Adani Power, is now 3.8% owned by Worldwide Emerging as a result of the agreement. In addition, records showed that GQG and an affiliated fund invested Rs 4,240 billion in 15.2 billion shares of Adani Power, or around 4% of the capital of the company. Adani Power’s first investment by the GQG is a small element of a larger bet on the Adani Group, although it is the first one.
Sources claim that GQG also bought the last 4.2% stake that was sold at auction on the secondary market. This transaction, which featured a stock exchange transaction involving 31 crore shares, or 8.1% of Adani Power’s total equity, represented one of the largest secondary market trades in history.
The family of Gautam Adani is trying to repair the conglomerate’s financial situation and win back investors after Hindenburg Research’s damning report on its business practises. The money obtained from the stake-sale would be utilised to increase liquidity.The group has a consolidated liabilities of Rs 2.4 lakh crore and a total cash position of roughly Rs 37,400 crore.
GQG has also been buying stock in other Indian companies. Purchasing 1 crore of the company’s shares in a secondary transaction for Rs 342 each, it invested Rs 352 crore in Sajjan-Jindal-owned JSW Energy on Wednesday, according to BSE records.