Promoter Group increases its stake in Adani Enterprises Ltd

22 Aug 2023 , 12:10 PM

As the ports-to-energy conglomerate continues to recover from the effects of a report by US short-seller Hindenburg Research, the promoter group led by Gautam Adani has boosted its interest in the group’s flagship company. According to a stock exchange filing, the promoter group boosted its ownership of Adani Enterprises Ltd. from 67.65% to 69.87%.

Kempas Trade and Investment Ltd, a member of the promoter group with a small investment in the company, purchased 2.22% on the open market between August 7 and August 18, according to the statement.

The increase in ownership occurs at the same time as US-based boutique investment firm GQG Partners has begun purchasing Adani group companies’ stock.

According to stock exchange documents, GQG last month expanded its investment in Adani Ports & Special Economic Zone (APSEZ) to 5.03% through a bulk transaction.

Presently, GQG owns a stake in five of the ten Adani Group companies. It acquired a 7.73% investment in Adani Power Ltd. on August 16. In block transactions on August 16, promoter group companies Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09% share in Adani Power.

Following the stake sale, promoter ownership of Adani Power fell to 66.88% from 74.97%.

Adani Group has refuted all of Hindenburg’s accusations and is preparing a comeback strategy that involves redefining its goals, abandoning acquisitions, paying off debt in advance to allay worries about its cash flows and borrowings, and slowing down the pace at which it invests in new projects.

But despite the accusations, GQG has continued to invest in Adani companies since May. In the past, GQG purchased stakes in Adani Enterprises, Adani Green Energy Ltd., and Adani Transmission Ltd. totaling 5.4%, 6.54%, and 2.5%, respectively.

Since then, some of the losses have been recouped by Adani stocks.

In Adani Group companies, GQG has so far invested Rs 38,700 crore. Adani Green Energy has received investments of Rs 4,100 crore from Qatar Investment Authority (QIA) and Rs 1,440 crore from Bain Capital, helping to restore investor trust.

The three portfolio firms have acquired board approvals for main issuances through a share sale to investors in addition to promoter stake sales.

Adani Transmission hopes to collect Rs 8,500 crore, while Adani Enterprises hopes to garner Rs 12,500 crore through the sale of shares to investors.

Rs 12,300 crores are what Adani Green Energy intends to raise. The green hydrogen projects are being developed by Adani Enterprises, and the renewable energy subsidiary, Adani Green Energy, is constructing 45 GW of capacity by 2030. Lines are laid by Adani Transmission to move this power.

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