Adani Group promoter hikes stake in Adani Enterprises by 2.22% to 69.87%

The Adani Group promoter firm has increased its stake in the group's flagship firm Adani Enterprises as the conglomerate continues to recover from the effects of a scathing report by US short-seller Hindenburg Research. The promoter firm, Kempas Trade and Investment Ltd, has increased its stake from 67.65 per cent to 69.87 per cent, the group said in an exchange filing on Monday. The promoter firm acquired 2.22 per cent in the open market between August 7 and August 18. 

This comes just two days after a disclosure statement revealed that US-based boutique investment firm GQG Partners had increased its stake in Adani Ports & Special Economic Zone (APSEZ) to 5.03 per cent last month by way of a bulk deal. GQG Partners previously held a 4.93 per cent stake in Adani Ports but it acquired an additional 0.10 per cent stake, equivalent to 2.2 million shares of the company, through a bulk transaction as detailed in the disclosure released late on Saturday.

The investment firm, which was first to pump money into the group after Hindenburg Research's report caused a massive rout in stock values, now has a stake in five of the 10 firms of the Adani Group. 

Last week, GQG bought a 7.73 per cent stake in Adani Power Ltd. Adani Power's promoter group firms Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09 per cent stake in the power company through block deals on August 16. Of this, the investment firm bought 7.73 per cent. After the stake sale, promoter holding in Adani Power declined to 66.88 per cent from 74.97 per cent. The investment comes days after Deloitte quit as auditor of APSEZ, renewing investor concerns. 

In January, Hindenburg accused the group of indulging in "accounting fraud" and "stock price manipulation". The short-seller also alleged that the conglomerate used shell firms for alleged fraud and had massive debts. Adani Group denied all charges and took a series of actions like scrapping acquisition plans and pre-paying debt to alley investors' fears about the group's cash flows.

GQG has, however, shrugged off the allegations and has since May invested billions of dollars in Adani firms. GQG had previously picked up a 5.4 per cent stake in Adani Enterprises, a 6.54 per cent stake in Adani Green Energy Ltd and a 2.5 per cent stake in Adani Transmission Ltd. GQG has so far invested Rs 38,700 crore in Adani Group firms. 

(With inputs from PTI)