A majority of Adani Group stocks were up in Wednesday's trade after it was reported that US-based investment firm GQG Partners made a third round of investment in the ports-to-energy conglomerate. GQG Partners and other investors have bought around $1 billion of additional stake in Adani Group via block deals, according to a report by the Economic Times.
The investors have bought 2.20 per cent stake comprising of 35.20 million shares in Adani Green Energy and 1.60 per cent stake comprising of 18 million shares in Adani Enterprises in block deals, the report added.
GQG had pumped in another $330 million-$530 million in the end of May. Before this, Rajiv Jain-controlled investment firm had initially invested $1.87 billion in four Adani Group companies in March. These four companies were Adani Ports and Special Economic Zone Ltd, Adani Green Energy, Adani Transmission and Adani Enterprises Ltd.
Group's flagship firm, Adani Enterprises, rose sharply today after the development. The stock was last seen trading 4.65 per cent higher at Rs 2,387.95. Around 3.20 lakh shares changed hands today on BSE, which was higher than the two-week average volume of 3.08 lakh shares. Turnover on the counter stood at Rs 76.20 crore, commanding a market capitalisation (m-cap) of Rs 2,71,730.67 crore.
Adani Ports and Adani Transmission rose more than 3 per cent, respectively. Also, Adani Total Gas, Adani Wilmar and Adani Power rose a per cent, each. In contrast, Adani Green Energy was last seen trading 1.50 per cent lower.
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Adani stocks were in focus last week after a news report by Bloomberg suggested that US authorities were looking into representations that Adani Group made to American investors following short seller Hindenburg Research's scathing report. The US Securities and Exchange Commission (SEC) also has a similar probe underway, the report further mentioned. An Adani spokesperson, in response, said: "We are not aware of any such subpoena to investors."
The counters have witnessed major fluctuations after the Hindenburg setback. In January 2023, US-based Hindenburg Research released a report alleging stock manipulation and accounting fraud by the Gautam Adani-led conglomerate. Adani, however, denied all the claims.
Indian market regulator Sebi in May had "drawn a blank" in investigations into suspected violations in overseas investments in the Adani Group. In addition, a Supreme Court-appointed panel said its ongoing pursuit of the case could be a "journey without a destination".
Meanwhile, Indian equity benchmarks rose sharply in afternoon deals to touch their fresh all-time high levels. The 30-share BSE Sensex pack surged more than 500 points to hit a record high of 63,949, while the broader NSE Nifty index moved over 150 points up to scale its lifetime peak of 18,982.
Also read: Sensex, Nifty hit record highs: CLSA says market 14% overbought; what Citi, others say