Shares of Adani group companies extended rally for the third straight session on Friday after Gautam Adani-controlled conglomerate sold minority stakes in four of the listed companies to American equity investment boutique GQG Partners for ₹15,446 crore. Listed on the Australian Stock Exchange, GQG Partners has acquired stakes in Adani Enterprises Limited (AEL), Adani Ports and Special Economic Zone Limited (APSEZ), Adani Green Energy Limited (AGEL), and Adani Transmission Limited (ATL) through a series of secondary block trade transactions on Thursday. Jefferies India Private Limited acted as a sole broker for the transaction. 

At 9:30 am, all Adani Group stocks were trading in green, led by Adani Enterprises, which rallied nearly 10%. Adani Green Energy, Adani Power, Adani Transmission, Adani Total Gas, and Adani Wilmar touched their 5% upper circuit limit. Among others, Adani Ports & SEZ surged over 7%, while newly acquired cement entities Ambuja Cement and ACC climbed up to 4% in opening trade.

Meanwhile, the BSE Sensex was trading 440 points, or 0.75%, higher at 59,350 levels, with all 30 heavyweights trading in green zone.

In a post market hour release on Thursday, Adani group said that GQG has bought 3.4% stake in Adani Enterprises for about ₹5,460 crore, 4.1% in Adani Ports for ₹5,282 crore, 2.5% in Adani Transmission for ₹1,898 crore, and a 3.5% shares in Adani Green Energy for ₹2,806 crore.

“The investment has made GQG a key investor in the development and growth of critical Indian infrastructure,” Adani group said in a statement.

Based in Florida, GQG Partners is one of the world’s leading global and emerging markets investors, managing more than $92 billion in client assets as of January 31, 2023.

Rajiv Jain, chairman and CIO of GQG Partners, said: “I am excited to have initiated positions in the Adani companies. Adani companies own and operate some of the largest and most important infrastructure assets throughout India and around the world. Gautam Adani is widely regarded as among the best entrepreneurs of his generation.”

“We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India’s economy and energy infrastructure, including their energy transition over the long-run,” Jain added.

Jugeshinder (Robbie) Singh, Group CFO of Adani Group, said: “...We value GQG’s role as a strategic investor in our infrastructure and utility portfolio of sustainable energy, logistics and Energy Transition.”

“This transaction marks the continued confidence of global investors in the governance, management practices and the growth of  Adani Portfolio of companies,” Singh added.

The investment by GQG is the first major capital infusion in the Adani Group since the U.S.-based short-seller Hindenburg Research’s critical report on the conglomerate came out on January 24, 2023. The report triggered a sell-off in group shares resulting in a cumulative market loss of around ₹12 lakh crore, with most of the listed entities hitting their 52-week lows.

However, Adani group shares have witnessed trend reversal in the last three days, with all nine listed entities ending in green zone, amid report that the Gautam Adani-led conglomerate is planning to prepay or repay share-backed loans worth $690 million to $790 million by March end. The port-to-power group has already repaid more than ₹12,000 crore over the last few days, which includes ₹9,500 crore to bondholders, ₹1,000 crore to SBI Mutual Fund, and ₹500 crore to Aditya Birla Sun Life Mutual Fund against commercial papers that matured last week. Besides, the group plans to repay another ₹1,200-1,400 crore to SBI MF against commercial papers maturing in March.

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