Shares of Adani Power climbed nearly 3% in early trade on Thursday after exchange data showed that the U.S.-based investment fund GQG Partners picked up 8.1% stake in the power arm of billionaire Gautam Adani-led Adani Group. In the largest ever single equity deal in the Indian stock market, Rajiv Jain-led investment firm purchased 31.2 crore equity shares of Adani Power for more than ₹9,000 crore ($1.1 billion) in a series of block deals on Wednesday.
According to BSE data, Adani group promoters — Mauritius-based Worldwide Emerging Market Holding and Afro Asia Trade and Investments sold stake worth ₹9,000 crore in a series of open market transactions on Wednesday. The shares were sold at an average rate of ₹279.17.
Snapping two sessions losing streak, Adani Power shares opened higher at ₹284.70, up 1.9% against the previous closing price of ₹279.3 on the BSE. In the first hour of trade so far, the power stock gained as much as 3.2% to ₹288.25, while the market capitalisation rose to ₹1.1 lakh crore. In the last two sessions, the stock tumbled 3%.
The share price of Adani Power touched a 52-week high of ₹432.80 on August 22, 2022, while it hit a 52-week low of ₹132.55 on February 28, 2023, amid broad-based sell-off across Adani group stocks following the release of a report by U.S. short seller Hindenburg Research.
Earlier in June, GQG Partners raised its shareholding in two Adani group companies by acquiring 1.6% in the group’s flagship Adani Enterprises and 2.2% in the renewable energy firm Adani Green Energy. The American equity investment firm also proposed participating in the group’s future fundraising activities, terming it "the best infrastructure assets available in India".
In March this year, Jain, the co-founder and chairman of GQG Partners, acquired minority stakes in four of the listed Adani Group companies for ₹15,446 crore. Listed on the Australian Stock Exchange, GQG Partners acquired stakes in Adani Enterprises Limited (AEL), Adani Ports and Special Economic Zone Limited (APSEZ), Adani Green Energy Limited (AGEL), and Adani Transmission (ATL).
The investment by GQG was the first major capital infusion in Adani Group since Hindenburg Research’s critical report on the conglomerate came out on January 24, 2023. The report triggered sell-off in group shares resulting in a huge market loss for most of the listed entities.
Earlier this month, Adani Power released its June quarter earnings report which showed that its consolidated net profit surged 83.30% to ₹8,759 crore in Q1 FY24 as against ₹4,780 crore in the same period last year. The consolidated total revenue increased by 16.80% to ₹18,109 crore versus Rs 15,509 crore in the year-ago period, driven by improved volumes, higher one-time revenue recognition on account of regulatory claims and late payment surcharge.
The consolidated EBITDA for the quarter stood at ₹10,618 crore, up 41.5% as compared to ₹7,506 crore in Q1 FY23, aided by prior period income recognition and incremental contribution of Godda power plant.
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