Adani Group Raises Over USD 1 Billion from Australia-based GQG Partners, Other Investors

Source Press
Company Adani Green Energy Limited, Goldman Sachs & Co. LLC
Tags Country: India, M&A: Corporate Deal, Deals, Renewables: Renewables News, Segment: Power
Date June 28, 2023

( Australia-listed investment firm GQG Partners and other investors have bought around $1 billion of additional stakes in Adani group companies — Adani Enterprises Limited and (AEL) Adani Green Energy (AGEL).

In separate deals, the promoters sold Rs 8,372 crore or over $1 billion in the two companies.

The SB Adani Family Trust sold 1.80 crore shares of the flagship company in a single block deal at an average price of Rs 2,300 per share for Rs 4,140 crore, according to stock exchange data.

Though the identity of the buyer was not disclosed, it is learnt to be GQG Partners and some other foreign investors.

NSE data also showed Infinite Trade and Investment selling 4.60 crore shares of AGEL at an average price of Rs 920.03 per share for Rs 4,232 crore. Goldman Sachs GQG Partners International Opportunities Fund picked up over 1.19 crore shares at an average price of Rs 902.05 per share in Adani Green.

The sale by SB Adani Trust in AEL accounted for around 1.58 per cent of its equity, while the transaction by Infinite Trade in AGEL was for around 2.90 per cent of AGEL’s equity.

There was no official comment from the Adani group on the transactions. Market circles said that the proceeds are likely to be used to bring down debt.

They said the latest deal is separate from the proposed qualified institutional placement (QIP) from AEL from which it plans to mobilise Rs 12,500 crore.

Another group firm Adani Transmission is planning to mobilise Rs 8,500 crore.

GQG Partners has been ramping up its investment in the Indian conglomerate ever since a short-sellers critical report in January sparked a stock rout, wiping out nearly $147 billion from Adani companies’ market value.

It was in early March that the Adani group sold minority stakes in four of the conglomerate’s listed companies to GQG Partners for Rs 15,446 crore. GQG ramped up that investment with an additional purchase of shares worth $400-500 million in May.

Australia-listed shares of GQG closed up 0.7 per cent on Wednesday.

Sources said GQG and the other foreign investors are primarily interested in Adani group’s airports, roads (transport and logistics), data centres, copper and green hydrogen business as they could lead to massive value unlocking over the next 5-15 years for its investors.

The company’s management has in the recent past indicated they will be separately listing airports and the roads businesses in the next three-four years.

“We believe the airport itself could be worth more than the company,” GQG’s chairman Rajiv Jain had said earlier, adding that the land alone stretches across some of Asia’s most expensive urban real estate.

Adani Green has emerged as the fastest-growing renewable energy player in India with its capacities growing at a 33 per cent compounded annual growth rate over the past five years, outpacing the industry average of around 15 per cent.

AEL finished with gains of 5.34 per cent at Rs 2,403.65 on the BSE, while the AGEL scrip ended in the red as it closed at 958.40, down 0.16 per cent.

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd