Page 32 - The Indian EYE 031723

BUSINESS EYE MARCH 17, 2023 | The Indian Eye 32

With GQG Partners buying

shares worth $1.87 billion, Adani

stock begins to rise

GQG, which is based in Florida, manages USD 88 billion in assets, in global, US and

emerging markets equities funds. It has bought shares in four Adani group companies,

including the conglomerate’s flagship firm Adani Enterprises

OUR BUREAU

Miami/Mumbai
n a huge development for the
Indian markets, United States
Iboutique investment firm GQG
Partners bought shares worth $1.87
billion in four Adani group compa-
nies this week. The decision of GQG
marks the first major investment in
the Adani group since a short-sell-
ers critical report resulted in a stock
rout. GQG took a 3.4 per cent stake
in Adani Enterprises for around 662
million, 4.1 per cent in Adani Ports
for USD 640 million, 2.5 per cent in
Adani Transmission for USD 230 mil-
lion, and a 3.5 per cent stake in Adani
Green Energy for USD 340 million,
Reuters reported citing the filing.
Adani group has told creditors
that it has secured a USD 3 billion
loan from a sovereign wealth fund. Adani Group has said that the group prepaid share-backed financing of Rs 7,374 crore (USD 902 million) ahead of its latest maturity in April
US-based GQG has bought shares 2025, in continuation of its promoters’ commitment to cut the overall leverage backed by Adani-listed company shares (File photo)
worth billions in four Adani group
companies, including the conglomer-
ate’s flagship firm Adani Enterprises, said the group prepaid share-backed holding. Along with the repayments two wind power plants. Also, the new
Reuters reported citing a regulato- financing of Rs 7,374 crore (USD 902 done earlier in the month of Febru- project will generate 1,500-2,000 new
ry filing. Adani family trust sold the million) ahead of its latest maturity in ary, the conglomerate said Adani has employment opportunities.
shares using Jefferies as a broker. April 2025, in continuation of its pro- prepaid USD 2,016 million of share- Last month, seven listed Adani
GQG, which is based in Florida, moters’ commitment to cut the over- backed financing, which is consistent companies have lost around USD
manages USD 88 billion in assets, in all leverage backed by Adani-listed with promoters’ commitment to pre- 135 billion in market value since
global, US and emerging markets eq- company shares. pay all share-backed financing before January 24, when Hindenburg Re-
uities funds. In early Australian trade, With the repayment of the said March 31, 2023, according to a state- search accused it of improper use of
GQG Partners shares witnessed a Rs 7,374 crore to various internation- ment from Adani Group. offshore tax havens and stock manip-
drop by 2.3 per cent while the S&P/ al banks and Indian financial institu- The group had just carried out ulation. The group, led by Gautam
ASX200 witnessed a rise of 0.4 per tions, the promoters of the flagship global investors’ roadshow to regain Adani, refuted the allegations. Adani
cent on Friday. company, Adani Ports, will release promoters’ confidence in the con- group later called off a USD 2.5 bil-
On Friday, Indian equity mar- 155 million shares, representing 11.8 glomerate. lion share sale.
kets made gains, tracking global cues. per cent of the promoters’ holding; On February 24, Sri Lanka’s But now the tide seems to be
Adani Group firms such as Adani En- Adani Enterprises’ promoters will Board of Investment approved the turning in the group’s favor.
terprises, Adani Green, Adani Trans- release 31 million shares, represent- two wind power plants of Adani Australian High Commissioner
mission, Adani Wilmar, Adani Ports ing 4 per cent of promoters’ holding; Green Energy to be built in Mannar Barry O’Farrell has said that Adani
and Adani Power made gains during Adani Transmission’s promoters will and Pooneryn at a total investment group is still a significant investor in
Friday’s session. After opening at release 36 million shares, repre- of USD 442 million. According to Australia. “Adani’s investment is fully
17,451.25, the Nifty extended gains senting 4.5 per cent of promoters’ the statement released by the Board functioning in Australia. No reports
during the day and settled near the holding while Adani Green Energy of Investment of Sri Lanka on Friday, I see from Australia of any effect on
17,600 level. will release 11 million shares which it has issued a letter of approval to business, he is still a significant inves-
Earlier, Adani Group on Tuesday comprised 1.2 per cent of promoters’ Adani Green Energy Limited, for the tor,” O’Farrell said.

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