Billionaire Gautam Adani-led promoter group has increased its stake in two group companies.
The company has increased its stake in flagship Adani Enterprises from 69.87 per cent to 71.93 per cent. It has also increased its stake in Adani Ports and Special Economic Zone Ltd from 63.06 percent to 65.23 percent, news agency PTI reported.
The increases were made through a combination of market purchases and preferential allotments. This is the second time in less than a month that the promoters of Adani Enterprises have increased their stake in the company.
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The first time was on August 7, when the promoters increased their stake in Adani Enterprises from 67.65 per cent to 69.87 per cent.
However, it is noteworthy to mention that this stake increase constitutes a part of a broader strategy for the Adani Group. With an internationally diverse portfolio spanning sectors including energy, logistics, agribusiness, real estate, financial services, defence and aerospace, the acquisition aligns with Adani Enterprise’s broader objective of maintaining a robust presence in high-growth sectors.
Resurgent Trade and Investment Ltd and Emerging Market Investment DMCC, both promoter group firms, bought almost 1 per cent and 1.2 per cent stake respectively in Adani Ports and Special Economic Zone Ltd (APSEZ) in open market transactions.
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The stake increase by the promoters of Adani group firms comes within weeks of the US-based boutique investment firm GQG Partners buying shares in these firms.
GQG Partners has increased its stake in Adani Ports & Special Economic Zone (APSEZ) to 5.03 per cent last month by way of a bulk deal, stock exchange filings showed.
The previous stake of GQG in APSEZ was 4.9 per cent. The increase in stake was done through the purchase of equity shares of APSEZ.
GQG presently owns a stake in five of the 10 Adani Group companies.
It purchased a 7.73 percent investment in Adani Power Ltd on August 16. On August 16, promoter group entities Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09 percent share in Adani Power in block agreements. According to disclosures, GQG purchased 7.73 percent of this.
The US short-seller Hindenburg Research released a report on January 24, 2023, alleging accounting fraud, stock price manipulation, and improper use of tax havens at the Adani group. The report triggered a stock market rout that had erased about USD 150 billion in the market value of Adani group companies at its lowest point.
The Adani group has denied all allegations by Hindenburg and has said that it is working on a comeback strategy. The group has said that it is recasting its ambitions, scrapping acquisitions, pre-paying debt, and scaling back its pace of spending on new projects.
The Organised Crime and Corruption Reporting Project (OCCRP) report recently alleged the ports-to-energy conglomerate of using ‘opaque’ Mauritius funds in its publicly traded stocks.
GQG, on the other hand, has dismissed the charges and has been investing in Adani enterprises since May. GQG previously acquired 5.4 percent of Adani Enterprises, 6.54 percent of Adani Green Energy Ltd, and 2.5 percent of Adani Transmission Ltd.
GQG Partners, QIA, and Bain Capital have all invested heavily in Adani group firms in recent months. This has helped to rebuild investor confidence in the group, which had been shaken by the allegations made by Hindenburg Research.
