The billionaire Gautam Adani-led promoter group has increased its stake in two of the group’s listed companies as the port-to-energy conglomerate continues to work on a clawback strategy after being hit by damaging reports. The promoter group has increased stake in flagship Adani Enterprises from 69.87% to 71.93%, stock exchange filings show.
This is the second time in less than a month that the promoters have increased their stake in the flagship company that is incubating new businesses. The promoters had last month increased their stake in Adani Enterprises Ltd from 67.65% to 69.87%.
The promoter group has also increased stake in Adani Ports and Special Economic Zone Ltd from 63.06% to 65.23%, the documents showed.
Resurgent Trade and Investment Ltd bought almost one% stake in Adani Ports and Special Economic Zone Ltd through open market transactions and another 1.2% was bought by Emerging Market Investment DMCC. Both are promoter group companies.
In the case of Adani Enterprises Ltd, the shares were bought by Kempas Trade and Investment Ltd and Infinite Trade and Investment Ltd.
The documents said the shares were purchased in open market transactions between August 14 and September 8.
The stake increase comes within weeks of US-based boutique investment firm GQG Partners buying shares in the Adani group companies.
GQG increased its stake in Adani Ports & Special Economic Zone (APSEZ) to 5.03% in a bulk deal last month, stock exchange filings show.
GQG now has a stake in five of the 10 Adani Group companies.
On August 16, it bought a 7.73% stake in Adani Power Ltd. Promoter group companies Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09% stake in Adani Power through block deals on August 16.
Of this, GQG bought 7.73%, the documents showed.
After stake sale, the promoter’s stake in Adani Power fell from 74.97% to 66.88%.
US short seller Hindenburg Research, in a report released on January 24, alleged accounting fraud, stock price manipulation and improper use of tax havens at the Adani group, leading to a stock market rout that had wiped out about $150 billion in market value. at its lowest point.
Adani Group has denied all of Hindenburg’s allegations and is working on a comeback strategy that includes realigning ambitions, scrapping acquisitions, prepaying debt to allay cash flow and borrowing concerns, and scaling back of the pace of spending on new projects.
However, GQG has shrugged off the allegations and has been investing in Adani companies since May. GQG previously held a 5.4% stake in Adani Enterprises, a 6.54% stake in Adani Green Energy Ltd and a 2.5% stake in Adani Transmission Ltd.
Adani shares have since recovered some of the losses.
GQG has invested Rs 38,700 crore in Adani Group companies so far. Qatar Investment Authority (QIA) has invested Rs 4,100 crore in Adani Green Energy and Bain Capital has infused Rs 1,440 crore, restoring investor confidence.
In addition to the sale of shares by promoters, the three portfolio companies have received board approval for primary issuance through a share sale to investors.
Adani Enterprises plans to raise Rs 12,500 crore through share sales to investors, while Adani Transmission plans to raise Rs 8,500 crore.
Adani Green Energy plans to raise Rs 12,300 crore. Adani Enterprises is incubating the green hydrogen projects, while Adani Green Energy is the renewable energy arm building 45 GW capacity by 2030.
