Adani Group promoters have recently raised their stakes in four of the listed entities: Adani Enterprises Limited, Adani Energy Solutions Limited, Adani Power Limited, and Adani Green Energy Limited. These promoters have also reduced their stakes in Ambuja Cements. The total value of this holding is approximately INR 12,778 crore. This is seen as the massive step towards further increasing the group’s business. It also highlights the trust that the promoters hold in the various entities that are currently operating under the Adani Group. The combined investments exceed INR 19,000 crore. GQG Partners has alone invested around INR 6,625 crore. With these investments, the Adani Group will be able to recover from the losses the company incurred during Adani Investigation.
Rise in Stakes in Adani Group of Companies
As per the latest news, Adani Group promoters have raised their stakes in four major entities which operate under the Adani Group. The promoters’ holdings were raised by 3.42% in Adani Green Energy Limited. This is a rise from 57.52% to 60.94%. Some of the major transactions include the Hibiscus Trade and Investment’s purchase of 20.1 million shares which involve 1.27% equity stakes. This transaction took place between 30th July and 18th September. Another major investment was Ardour Investment Holdings’ acquisition of 26.7 million shares. This involved 1.69% equity stake which were purchased between 19th September and 23rd September.
As per the average stock price of INR 1,903 during the particular quarter, the total value of these acquisitions is estimated at around INR 10,310 crore. The promoter’s holdings in Adani Power increased by 2.25%. This points to 74.96 % with an estimated spend of INR 5,703 crore. The promoters also invested around INR 427 crore in Adani Energy Solutions and INR 626 crore in Adani Enterprises. The promoter’s stakes in Ambuja Cements dropped by 2.76% down to 67.57% from 70.33% discount. The major rise in stakes has helped the Adani Group acquire stability post the Adani Investigation.
GQG Partners’ Investment in The Adani Group
GQG Partners, one of the biggest investors of Adani Group’s assets, have made significant investments in Adani Group’s business. The Rajiv Jain-backed company has made a total investment of INR 6,625 crore in four of the Adani Group subsidiaries during the September quarters. The companies are Adani Energy Solutions, Adani Enterprises Limited, Ambuja Cement Limited, and Adani Green Energy Limited. The company, however, reduced its stakes in Adani Power Limited and Adani Ports and SEZ by INR 35 crore and INR 22 crore respectively. The company has also made significant investments in Adani Green Energy. It participated in the QIPs for INR 3,390 crore for Adani Energy Solutions and Ambuja Cement Limited. The company made purchases worth INR 1,784 crore and INR 1,077 crore respectively.
GQG Partners also made investments worth INR 432 crore in Adani Enterprises. Upon successful completion of these transactions, GQG Partners now holds 4.7% stakes in Adani Energy Solution. This is up from 3.4% during the previous quarter. It also holds 5.28% stakes in Adani Green Energy. This is up from 4.16%. The company’s stakes in Ambuja Cement increased from 1.35% to 2.05%. Its holdings in Adani Enterprises also rose from 3.4% to 3.52%. CQG Partners had shown its trust in the Adani Group’s business even when the Adani Investigation was in progress. This helped the business group in driving new investors towards its various business operations. The group was also able to get back to its original state of glory.
Conclusion
The increase in stakes in various Adani Group companies highlight the trust that the investors hold in the Adani Group. It is also going to pave the way for future investments to be made in the Adani Group of companies. With these investments, the Adani Group will be able to carry out its business transaction seamlessly post the controversies of Adani Investigation. It will no longer have to deal with shortage of cash. The business group will also be able to build the way for more ventures in the upcoming years. Its hold over the dynamic business landscape is also going to strengthen.
