Adani promoters may pare more stake in group companies: Report

Adani Group promoters, led by Gautam Adani, are reportedly paring holdings in the group companies in order to create a liquidity buffer. This could be used to tap new opportunities and infuse equity in various units. 

A person aware of the developments told The Economic Times that the promoters have decided to prune their holdings through a combination of primary and secondary stake sales as they believe that building cash reserves is the best way forward considering the uncertain global investment environment. 

The Adani Group promoters have sold stakes to US-based GQG Partners so far and are in discussions with other global investors. The report added that the promoters are in talks with a West Asia-based fund and the next transaction is expected to be done by September. 

However it is unclear how the proceeds of the last round of equity sales would be used by the promoters.

The Adani family holds over 60 per cent in all the group’s listed companies, except for ACC and Adani Green Energy. 

The promoters sold stakes worth $3 billion to GQG in multiple transactions. The US fund first invested $1.87 billion in the group, after which the promoters repaid $2.15 billion loans that had been taken by pledging shares in its listed firms. 

GQG Partners has been ramping up its investment in the Indian conglomerate ever since short-seller Hindenburg Research’s critical report in January sparked a stock rout, wiping out nearly $147 billion from Adani companies' market value. In May, the investment firm upped its stake in Adani by about 10 per cent. Last month, GQG Partners and other investors bought an additional $1 billion stake in the group companies. They bought 2.2 per cent stake in Adani Green Energy and 1.6 per cent stake in Adani Enterprises Ltd. 

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