Adani Group promoter hikes stake in two group companies
Adani Group promoter firm has increased its stake in two of the group’s listed companies as the conglomerate continues to work on strategy to recover from the effects of the damaging reports.
The promoter group in stock exchange filings said it has increased stake in flagship Adani Enterprises to 71.93% from 69.87%. The shares were bought by Kempas Trade and Investment Ltd and Infinite Trade and Investment Ltd
This is the second time in less than a month that the promoters have raised stake in the flagship firm. The promoters had last month increased stake in Adani Enterprises Ltd from 67.65% to 69.87%. Both are promoter group firms.
In a separate stock exchange filing, the promoter group informed that it has also increased stake in Adani Ports and Special Economic Zone Ltd from 63.06% to 65.23%.
Resurgent Trade and Investment Ltd bought almost 1% stake in Adani Ports and Special Economic Zone Ltd in open market transactions and another 1.2% was purchased by Emerging Market Investment DMCC. Both are promoter group firms.
The stock exchange filings said the stakes were bought in open market transactions between August 14 and September8.
The move comes within weeks of the US-based boutique investment firm GQG Partners buying shares in Adani group firms. The stock exchange filings show that US based firm has increased its stake in Adani Ports & Special Economic Zone (APSEZ) to 5.03% last month by way of a bulk deal.
The US based investment firm now has a stake in five of the 10 Adani Group firms.
On August 16, it bought a 7.73% stake in Adani Power Ltd. Promoter group firms Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09% stake in Adani Power through block deals on August 16. Of this, GQG bought 7.73%, filings showed.
After the stake sale, promoter holding in Adani Power declined to 66.88% from 74.97%.
The US short-seller Hindenburg Research, in a report released on January 24, alleged accounting fraud, stock price manipulation and improper use of tax havens at the Adani group, triggering a stock market rout that had erased about $150 billion in the market value at its lowest point.
Adani Group has denied all allegations by Hindenburg and is working on a comeback strategy that includes recasting its ambitions, scrapping acquisitions, pre-paying debt to address concerns about its cash flows and borrowings, and scaling back its pace of spending on new projects.
GQG has, however, shrugged off the allegations and has since May invested in Adani firms. GQG had previously picked up a 5.4% stake in Adani Enterprises, a 6.54% stake in Adani Green Energy Ltd and a 2.5% stake in Adani Transmission Ltd.
GQG has so far invested ₹38,700 crore in Adani Group firms. Qatar Investment Authority (QIA) has invested ₹4,100 crore in Adani Green Energy and Bain Capital has poured in ₹1,440 crore, helping re-build investor confidence.
Adani stocks have since recovered some of the losses.
Source: Live Mint
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