Adani Group shares rally up to 10% as GQG Partners buy Rs 15,446 cr stake

Shares of Adani group companies rallied up to 10 per cent on the BSE in Friday’s intra-day trade after the promoters sold shares worth Rs 15,446 crore in four of its listed entities to GQG Partners, a US-based global equity-investment boutique firm.

The promoters plan to use the proceeds to retire debt and for other purposes. They sold shares in Adani Enterprises (AEL) worth Rs 5,460 crore, and those worth Rs 5,282 crore in Adani Ports & Special Economic Zone (APSEZ). They also sold shares worth Rs 2,806 crore in Adani Green Energy and Rs 1,898 crore in electricity distributor Adani Transmission. 

Among individual stocks, AEL, the incubation arm of Adani Portfolio, surged 10 per cent to Rs 1,767.35 on the BSE. APSEZ soared 8 per cent to Rs 672.85, while, Adani Transmission (Rs 743.75), Adani Green Energy (Rs 562), Adani Total Gas (Rs 781.85), Adani Power (Rs 169.45), Adani Wilmar (Rs 418.30) and New Delhi Television (NDTV) (Rs 220.10) were locked at the 5 per cent upper circuit. Ambuja Cements and ACC were up 4 per cent each. In comparison, the S&P BSE Sensex was up 0.83 per cent at 59,397.77 at 09:28 AM.

GQG is one of the world’s leading Global and Emerging Markets investors with exceptional long-term track records. GQG Partners manages more than AUD$130 billion (USD $92 billion) in client assets as of January 31, 2023.

“GQG is investing in Adani Portfolio companies which own and operate the largest airport and port platform in India, largest private sector transmission and distribution platform in India and that will generate ~9 per cent of India's renewable energy capacity by 2030,” Adani said in a media release.

Rajiv Jain, Chairman and CIO of GQG Partners, said they 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.

Jugeshinder Singh, chief financial officer of the Adani group, said the conglomerate valued GQG’s role as a strategic investor in its 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 the Adani portfolio of companies,” Singh said.

APSEZ has committed to being carbon neutral by 2025 and to be a leader in the development of sustainable transport utility. AEL, through its wholly owned subsidiary Adani New Industries Limited has committed to build, over the next 9 years, a new green hydrogen vertical focused on decarbonization of industrial energy and mobility.