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
In a huge development for the Indian markets, United States boutique investment firm GQG Partners bought shares worth $1.87 billion in four Adani group companies this week. The decision of GQG marks the first major investment in the Adani group since a short-sellers 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 million, 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. US-based GQG has bought shares worth billions in four Adani group companies, including the conglomerate’s flagship firm Adani Enterprises, Reuters reported citing a regulatory filing. Adani family trust sold the shares using Jefferies as a broker.
GQG, which is based in Florida, manages USD 88 billion in assets, in global, US and emerging markets equities funds. In early Australian trade, GQG Partners shares witnessed a drop by 2.3 per cent while the S&P/ASX200 witnessed a rise of 0.4 per cent on Friday.
On Friday, Indian equity markets made gains, tracking global cues. Adani Group firms such as Adani Enterprises, Adani Green, Adani Transmission, Adani Wilmar, Adani Ports and Adani Power made gains during Friday’s session. After opening at 17,451.25, the Nifty extended gains during the day and settled near the 17,600 level.
Earlier, Adani Group on Tuesday said the group prepaid share-backed financing of Rs 7,374 crore (USD 902 million) ahead of its latest maturity in April 2025, in continuation of its promoters’ commitment to cut the overall leverage backed by Adani-listed company shares.
With the repayment of the said Rs 7,374 crore to various international banks and Indian financial institutions, the promoters of the flagship company, Adani Ports, will release 155 million shares, representing 11.8 per cent of the promoters’ holding; Adani Enterprises’ promoters will release 31 million shares, representing 4 per cent of promoters’ holding; Adani Transmission’s promoters will release 36 million shares, representing 4.5 per cent of promoters’ holding while Adani Green Energy will release 11 million shares which comprised 1.2 per cent of promoters’ holding. Along with the repayments done earlier in the month of February, the conglomerate said Adani has prepaid USD 2,016 million of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before March 31, 2023, according to a statement from Adani Group.
The group had just carried out global investors’ roadshow to regain promoters’ confidence in the conglomerate.
On February 24, Sri Lanka’s Board of Investment approved the two wind power plants of Adani Green Energy to be built in Mannar and Pooneryn at a total investment of USD 442 million. According to the statement released by the Board of Investment of Sri Lanka on Friday, it has issued a letter of approval to Adani Green Energy Limited, for the two wind power plants. Also, the new project will generate 1,500-2,000 new employment opportunities.
Last month, seven listed Adani companies have lost around USD 135 billion in market value since January 24, when Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation. The group, led by Gautam Adani, refuted the allegations. Adani group later called off a USD 2.5 billion share sale.
But now the tide seems to be turning in the group’s favor. Australian High Commissioner Barry O’Farrell has said that Adani group is still a significant investor in Australia. “Adani’s investment is fully functioning in Australia. No reports I see from Australia of any effect on business, he is still a significant investor,” O’Farrell said.
