Mega block deals of Adani stocks: US-based GQG Partners buys shares worth Rs 15,446 cr

GQG Partners, an US-based boutique investment firm, on Thursday bought shares worth Rs 15,446 crore ($1.87 billion) in Adani Group firms like Adani Ports and Special Economic Zone Limited, Adani Green Energy Limited, Adani Transmission Limited and Adani Enterprises Ltd through block deals.

"The investment has made GQG a key investor in the development and growth of critical Indian infrastructure," said Adani Group in a statement. Jefferies India Private Limited acted as a sole broker for the transaction.

This marks the first major investment in the embattled Adani Group since a short-seller's critical report sparked a stock rout. The group's seven listed companies have lost some $135 billion in market value since January 24, when Hindenburg Research accused it of improperly using offshore tax havens and of stock manipulation - allegations the billionaire Gautam Adani-led group has denied.

SB Adani Family Trust has cumulatively sold about 21 crore in four of the Adani Group companies through the open market on Thursday. GQG Partners bought 2.84 crore shares of Adani Transmission on Thursday at Rs 668.4 apiece aggregating to Rs 1,898 crore, 3.87 crore shares of Adani Enterprises at Rs 1,410.86 apiece aggregating to Rs 5,460 crore, 8.86 crore shares of Adani Ports at Rs 596.2 apiece aggregating to Rs 5,282 crore, 5.56 crore shares of Adani Green Energy at Rs 504.60 apiece aggregating to Rs 2,806 crore.

Rajiv Jain, Chairman and CIO of GQG Partners, said: “I am excited to have initiated positions in the Adani companies. Adani companies own and operate some of the largest and most important infrastructure assets throughout India and around the world. Gautam Adani is widely regarded as among the best entrepreneurs of his generation. We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India’s economy and energy infrastructure, including their energy transition over the long-run.”

Jugeshinder (Robbie) Singh, Group CFO of Adani Group, said: “We are delighted to complete this landmark transaction with GQG. We value GQG’s role as a strategic investor in our infrastructure and utility portfolio of sustainable energy, logistics and Energy Transition. This transaction marks the continued confidence of global investors in the governance, management practices and the growth of Adani portfolio of companies.”

"GQG is one of the world’s leading global and emerging markets investors with exceptional long-term track records. GQG Partners manages more than AUD$130 billion ($92 billion) in client assets as of January 31, 2023. Listed on the Australian Stock Exchange, GQG Partners is the winner of Morningstar Australia’s Global Equity Manager of the Year for 2022," said Adani Group.

A Goldman Sachs fund has also bought shares worth $138 million in Adani Green, $280 million of shares in Adani Ports, and $67 million of shares in Adani Transmission, stock exchange data showed on Thursday.

"For the short-term, this will definitely be a big positive for the sentiment for Adani stocks given a chunk of shares being bought by big investors," Avinash Gorakshakar, head of research at Profitmart Securities told Reuters.

"But in the longer term market is going to look at how growth is going to come."

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