GQG Partners LLC and other investors bought stakes worth about $1 billion in two Adani Group companies from the family trust, according to people with knowledge of the matter. 

The investors bought shares in billionaire Gautam Adani’s flagship company and its green arm Adani Green Energy Ltd., said the people, who asked not to be named as they’re not authorised to speak on the matter. Large block trades were seen in both companies in early Mumbai trading on Wednesday. 

Adani has been seeking to rebuild market confidence since accusations of fraud by US short-seller Hindenburg Researchwiped out more than $150 billion in the value of his companies at one point. GQG’s Rajiv Jain said in May he wants to be one of the largest investors in the group, arguing that the infrastructure assets, from ports to coal mines and power transmission, are valuable given India’s ambitious growth plans. 

Adani Enterprises Ltd. saw 18 million shares traded in a single block Wednesday, or about 1.6 per cent of its outstanding stock, according to data compiled by Bloomberg. Adani Green had a total 35.2 million shares change hands.

Also read: GQG’s Jain bets Adani Group will thrive with or without Modi

 In March, GQG acquired almost $2 billion worth of shares in four of Adani’s firms. Two months later, emerging market veteran investor Jain said his firm had raised its stake in the Adani Group by about 10 per cent and may take part in any future fund raising by the conglomerate.

His initial purchase of shares, including in the flagship and green energy arm, was from the founding family’s trust. The investments anchored the group’s recovery from the losses sparked by Hindenburg, though all 10 companies are still trading below the levels before the report.

The Adani Group didn’t immediately reply to an email request for comments. Bloomberg News couldn’t immediately contact GQG Partners for a comment. ET Now television channel reported the investments earlier.

Premium Purchase

The block trade for Adani Enterprises was transacted at ₹2,300 ($28), a premium to its closing price of ₹2,284.45 . For Adani Green, the trades were priced at ₹920 to ₹924.75, a discount to Tuesday’s close, and accounted for about 2.2 per cent of its outstanding stock. 

Adani Enterprises jumped as much as 5.9 per cent to 2,419 rupees on Wednesday, while Adani Green fell as much as 6.8 per cent but erased most of its losses to trade 0.4 per cent lower at ₹955.60 in Mumbai.

The Adani group has scrapped acquisitions and prepaid debt in an attempt to address concerns about its cash flow and borrowings. In May, Adani Enterprises and Adani Transmission Ltd. announced plans to raise a total of $2.6 billion, without committing to a time frame.

 

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