Adani Power shares in focus after promoter offload 8.1% stake to GQG Partners and others

Shares of Adani Power will remain in focus during the trading session on Thursday after the bulk deal between the Promoters and Rajiv Jain led GQG Partners. According to media reports, Promoter entities offloaded about 8.1 per cent stake of the Adani Group's utility arm on Wednesday.

According to the bulk deal data, the US-based boutique investment firm bought 31.2 crore equity shares of Adani Power for more than Rs 9,000 crore ($1.1 billion). GQG Partners and other investors bought 31.2 crore shares of Adani Power in a block deal - one of the largest ever secondary market equity transactions - stock market data showed.

Jain's investment firm has been interested in Adani Group companies lately. The marquee investor has been shrugging off the damning report from Hindenburg, the US short seller, to invest in billionaire Gautam Adani's group. Adani Power has become the fourth entity from Gautam Adani's ports-to-energy conglomerate where GQG has invested since May.

Promoter Adani family held 74.97 per cent, or 289.16 crore equity shares in the utility company but sold an 8.1 per cent stake, or 31.2 crore equity shares, at an average price of Rs 279.17 per share.

Shares of Adani Power were settled at Rs 279.30, falling more than 2 per cent on Wednesday, commanding a total market capitalization of more than 1.07 lakh crore. The stock has more than doubled from its 52-week low at Rs 132.55 hit on February 28, 2023, after the US-based short seller Hindenburg accused Adani Group of manipulating and malpractices in its dampening report.

About two weeks ago, Adani Group had reported a strong performance in the June 2023 quarter, where its net profit jumped 83 per cent to Rs 8,759 crore against a net profit of Rs 4,780 crore in the year ago period. The total revenue for the company rose about 17 per cent to Rs 18,109 crore, while EBITDA came in at Rs 10,618 crore, up 42 per cent compared to the year ago period.

GQG Partners Emerging Markets Equity Fund and Goldman Sachs Trust II-Goldman Sachs GQG Partners Intl Opportunities Fund bought 15.2 crore shares at Rs 279.15 apiece, according to the stock market data from BSE. Adani Power is one of India's strategic energy and power producers.

On the other hand, the US-based investment firm, GQG Partners, has been quite interested in the Adani Group stocks. It had started investing in them in early March, when the group was reeling under damaging allegations made by Hindenburg Research, and has been increasing its stake in group companies.

GQG had previously picked up a 5.4 per cent stake in Adani Enterprises, a 6.54 per cent stake in Adani Green Energy and a 2.5 per cent stake in Adani Transmission. Adani Power is fourth company from Gautam Adani's diversified conglomerate to be place in GQG's investment bouquet