MUMBAI: The Adani The family on Thursday sold Rs 15,446 crore ($1.9 billion) worth of shares in four group companies to US-based boutique firm GQG Partners, co-founded by the Indian born Rajiv Jainknown for his betting on safe and defensive action.
Adani Group, which is trying to recover from a sell-off triggered by the Hindenburg report, unloaded its shares through a series of secondary deals on the NSE and BSE. The shares sold at a substantial discount to closing prices.
The disclosures of blocking deals on the two exchanges showed that SB Adani Family Trust sold 3.4% in flagship Adani Enterprises for Rs 5,460 crore, 4.1% in Adani Ports & SEZ for Rs 5,282 crore, on 3 .5% in Adani Green Energy for Rs 2,806 crore and 2.6% in Adani Transmission for Rs 1,898 crore. At Rs 1,408 per share, Adani Enterprises was sold at a 12.4% discount to its closing price of Rs 1,607, Adani Green was at 5.7%, Adani Transmission at 5.6% while Adani Ports at 4, 3%.
The deal marks the first investment in Adani Group companies by GQG, which was founded in June 2016 by Jain together with Tim Carver. “We believe the long-term growth prospects for these companies are substantial,” said Jain, president and chief investment officer of GQG. Listed on the Australian Stock Exchange, GQG managed $92 billion worth of assets as of January 31. He held shares in ITC and HDFC Bank, among other Indian companies, as Jain “finds non-US markets attractive”.
Jain told Bloomberg TV that there is “a lot of hot air” about the Adani group. “The banking system is fine. Overall exposure is less than 1%. The second thing is that these are regulated businesses. This is not about Enron or Satyam. On February 23, he said: ‘Adani in particular is a choice different to do”.
The money raised from the sale of the stake will be used to shore up liquidity and to repay loans backed by pledged shares as the family, led by Gautam Adani, seeks to improve the credit profile of the conglomerate. As of 30 September 2022, the group’s consolidated gross debt stood at Rs 2.3 lakh crore and its total cash balance amounted to Rs 29,754 crore.
Transactions with GQG have helped Adani group companies settle higher on the BSE, with its combined mcap now nearly Rs 8 lakh crore. Shares of Adani Transmission, Adani Green Energy, Adani Power, Adani Wilmar, NDTV and Ambuja Cements rose 5%. Adani Enterprises was up 2.7%, while Adani Ports was up 3.5%, Adani Total Gas was up 4.4% and ACC was up 1.8%.
Adani Group, which is trying to recover from a sell-off triggered by the Hindenburg report, unloaded its shares through a series of secondary deals on the NSE and BSE. The shares sold at a substantial discount to closing prices.
The disclosures of blocking deals on the two exchanges showed that SB Adani Family Trust sold 3.4% in flagship Adani Enterprises for Rs 5,460 crore, 4.1% in Adani Ports & SEZ for Rs 5,282 crore, on 3 .5% in Adani Green Energy for Rs 2,806 crore and 2.6% in Adani Transmission for Rs 1,898 crore. At Rs 1,408 per share, Adani Enterprises was sold at a 12.4% discount to its closing price of Rs 1,607, Adani Green was at 5.7%, Adani Transmission at 5.6% while Adani Ports at 4, 3%.
The deal marks the first investment in Adani Group companies by GQG, which was founded in June 2016 by Jain together with Tim Carver. “We believe the long-term growth prospects for these companies are substantial,” said Jain, president and chief investment officer of GQG. Listed on the Australian Stock Exchange, GQG managed $92 billion worth of assets as of January 31. He held shares in ITC and HDFC Bank, among other Indian companies, as Jain “finds non-US markets attractive”.
Jain told Bloomberg TV that there is “a lot of hot air” about the Adani group. “The banking system is fine. Overall exposure is less than 1%. The second thing is that these are regulated businesses. This is not about Enron or Satyam. On February 23, he said: ‘Adani in particular is a choice different to do”.
The money raised from the sale of the stake will be used to shore up liquidity and to repay loans backed by pledged shares as the family, led by Gautam Adani, seeks to improve the credit profile of the conglomerate. As of 30 September 2022, the group’s consolidated gross debt stood at Rs 2.3 lakh crore and its total cash balance amounted to Rs 29,754 crore.
Transactions with GQG have helped Adani group companies settle higher on the BSE, with its combined mcap now nearly Rs 8 lakh crore. Shares of Adani Transmission, Adani Green Energy, Adani Power, Adani Wilmar, NDTV and Ambuja Cements rose 5%. Adani Enterprises was up 2.7%, while Adani Ports was up 3.5%, Adani Total Gas was up 4.4% and ACC was up 1.8%.
