US-based boutique investment firm GQG Partners, along with the IHC Group and others, on Wednesday invested around $1 billion in Adani Group stocks, according to a report in ET Now. GQG, controlled by Rajiv Jain, and other investors have bought a total of $1 billion of additional stakes in the conglomerate's stocks -- Adani Enterprises, Adani Green Energy -- through block deals, ET Now reported citing sources.
This is the third round of investment by GQG Partners. Earlier in March, GQG had made a Rs 15,446 crore investment to pick stakes in four Adani Group firms - Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission and Adani Enterprises.
In May, GQG founder Jain said GQG had raised its stake in the Gautam Adani-controlled conglomerate by about 10 per cent and may take part in any future fundraising by the conglomerate. In May, two Adani firms, Adani Enterprises and Adani Transmission, together announced raising up to Rs 21,000 crore together.
According to Bloomberg data, Adani Green Energy saw about 11.4 lakh shares change in 24 large trades, which 2.2 per cent equity.
Similarly, Adani Enterprises saw about 1.8 crore shares, or 1.6 per cent equity, change hands. The block trade for Adani Enterprises was transacted at Rs 2,300 while the Adani Green deal was priced at Rs 920, the report said.
Last week, the US-based boutique investment firm saw its profit dip by nearly Rs 4,500 cr in its Adani investments after a report said US authorities are investigating the representations made by the Adani Group to its American investors. The representations were necessitated in the wake of a scathing report against the conglomerate by US short seller Hindenburg Research.
On Friday, Adani Group's market capitalisation fell as much as Rs 55,000 crore, its biggest single-day drop in m-cap in four months.
GQG Partners had bought 38,701,168 Adani Enterprises shares at Rs 1,410.86 apiece for Rs 5,460 crore. In May, the shares of Adani Enterprises touched a high of Rs 2,759.5 apiece after an expert committee, appointed by the apex court, said that the panel didn’t find any regulatory failure on the part of market regulator Securities and Exchange Board of India (Sebi) in relation to Adani Group of companies.
In May, GQG Partners made a whopping profit of Rs 11,474 crore, around a 74 per cent rise from its buying price in March. Last Friday, it saw the profit fall to Rs 7,014 crore, which was estimated to be 30 per cent fall from its notional profit a month ago.
On Wednesday, Adani Enterprises Ltd, Adani Power Ltd, Adani Ports & SEZ and six other Adani group stocks gained in daily trade taking the group's market capitalisation across the Rs 10 lakh crore mark. Adani Enterprises shares rose sharply on Wednesday. The stock was last seen trading 4.65 per cent higher at Rs 2,387.95.
On Monday this week, the Adani Group said it operates a robust corporate governance framework and was strongly committed to following all applicable laws and regulations. The comments came amid reports of SEC probe. It cited the expert committee's report that suggested that the group has taken mitigation measures such as paring down debt, fresh infusion, which led to an increase in investor confidence.
"Sebi (Indian securities regulator) is examining certain aspects and their queries are being responded by Adani portfolio entities. We request to avoid needless speculation at this time and wait for SEBI and the Hon'ble Supreme Court to complete their work and submit their findings," it said.
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