Adani Power shares jump 3% as GQG Partners, others invest $1

Adani Power shares jump 3% as GQG Partners, others invest $1.1 billion for 8.1% stake in Gautam Adani-led firm

The share price of Adani Power jumped 3.08% in trade to trade at Rs 288.5 apiece on Thursday as GQG Partners and other investors bought an 8.1% stake in the firm for a total consideration of $1.1 billion on Wednesday. In the largest capital market equity transactions with GQG, 31.2 crore shares changed hands for a consideration of Rs 279.17 per share. The two Adani family entities that offloaded their shares were Worldwide Emerging Market Holding and Afro Asia Trade and Investments.

Adani Power shares closed at Rs 279.30 on Wednesday, dropping more than 2% from Monday’s closing price, resulting in a total market capitalization surpassing 1.07 lakh crore. From its 52-week low, the stock has seen an increase of over 100%.

Previously in June, GQG Partners undertook their third tranche of investment in the group, investing around $1 billion in Adani Enterprises and Adani Green Energy. GQG first committed Rs 15,446 crore in March for stakes in four group companies – Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission, and Adani Enterprises. This was done shortly after the Hindenburg Research report was released, when the market capitalization of the companies was hovering near 52-week lows.

The sale reflects the fundraising attempts to trim the promoters’ debts, especially after the Adani Enterprises follow-on public offer was called off in February. Paying off their debts will release the promoter share pledges, leading to lower leverage and additional capacity to acquire funding to fuel the conglomerate’s growth, expansion and capex plans.