GQG Purchases Adani Transmission Stake Worth INR 2,666 Crore

GQG purchases Adani Transmission stake worth INR 2,666 crore

News Highlights

The Adani Group sells a 3% stake in Adani Transmission, raising approximately INR 2,666 crore through open market transactions.
US investment firm GQG Partners purchases the entire stake, further expanding its investment in Adani Group stocks.
GQG Partners, along with other investors, injects around $1 billion into Adani Group stocks, aiding in the recovery of the conglomerate’s shares.

Adani Transmission

Electric power distribution company

Parent organizations: Adani Group, S.B. Adani Family Trust
CEO: Anil Kumar Sardana (1 May 2018–)
Revenue: 13,840 crores INR (US$1.7 billion, 2023)
Subsidiaries: Adani Electricity Mumbai Limited, MORE
Headquarters: Ahmedabad
Founder: Gautam Adani
Founded: 9 December 2013

On Friday (July 1), it was reported that the Adani Group had sold approximately a 3 percent stake in Adani Transmission through open market transactions, generating around INR 2,666 crore. The Economic Times stated that GQG Partners, a US-based investment firm, had purchased the entire lot.

According to NSE bulk deals data, Fortitude Trade and Investment, a promoter of Adani Transmission, sold 33.9 million shares, equivalent to a 3.04 percent stake, at an average price of INR 786.19 apiece, totaling INR 2,666.47 crore.

Although NSE data indicated that GQG Partners acquired a total of 21.3 million shares (1.91 percent stake) for INR 1,676 crore, sources revealed that the entire lot was purchased by the US fund, as reported by ET.

This recent purchase occurred just two days after GQG Partners, along with the IHC Group and other investors, injected around $1 billion into Adani Group stocks. As per sources cited by ET Now, GQG, under the control of Rajiv Jain, and other investors acquired additional stakes in Adani Enterprises and Adani Green Energy through block deals, totaling $1 billion.

Previously, in March, GQG had invested INR 15,446 crore to acquire stakes in four Adani Group firms – Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission, and Adani Enterprises. This investment came at a time when the company’s shares faced significant declines following allegations of illegal stock price manipulation made by a US-based short seller.

The Adani Group vehemently denied all allegations. In May, GQG founder Rajiv Jain stated that the investment firm had increased its stake in the Gautam Adani-led conglomerate by approximately 10 percent and expressed interest in participating in any future fundraising initiatives by the conglomerate. Furthermore, Adani Enterprises and Adani Transmission jointly announced a plan to raise up to Rs 21,000 crore in May.

Since GQG’s investment, there have been reports of a recovery in the conglomerate’s stocks, which had previously experienced significant declines.