Adani Group increases stake in two of its listed companies
Adani Group has raised its stake in two listed companies: Adani Enterprises and Adani Ports and Special Economic Zone (APSEZ), as part of its claw-back strategy following damaging reports from earlier this year. Gautam Adani-led promoter group's stake in Adani Enterprises has risen to 71.93% (from 69.87%), which marks the second time within a month that promoters have raised their stake in the flagship firm. In APSEZ, the group has increased its stake to 65.23% from 63.06%.
Claw-back strategy amid Hindenburg allegations
The Adani Group is working on a comeback strategy after getting hit by damaging reports from Hindenburg Research, which alleged accounting fraud, improper use of tax havens, and stock price manipulation. The allegations triggered a stock market rout that erased about $150 billion in market value. Now, the group's claw-back strategy includes scrapping acquisitions, recasting ambitions, pre-paying debt to address concerns about cash flows, and scaling back spending on new projects.
GQG Partners has also invested in APSEZ
US-based investment firm GQG Partners recently increased its stake in five of the 10 Adani Group firms, shrugging off Hindenburg's allegations. Last month, GQG bought a 5.03% stake in APSEZ through a bulk deal. It also picked up a 7.73% stake in Adani Power, 5.4% in Adani Enterprises, 6.54% in Adani Green Energy, and 2.5% in Adani Transmission. GQG has invested Rs. 38,700 crore in Adani Group firms since May.
Adani's comeback plan: Stake sales and investments
As part of its comeback strategy, Adani Group plans stake sales by promoters and primary issuances through share sales to investors. Adani Enterprises aims to raise Rs. 12,500 crore, Adani Transmission plans to raise Rs. 8,500 crore, and Adani Green Energy intends to mop up Rs. 12,300 crore. Qatar Investment Authority (QIA) has invested Rs. 4,100 crore in Adani Green Energy, and Bain Capital has poured in Rs. 1,440 crore, helping rebuild investor confidence.
