GQG, others acquire 8.1% stake in Adani Power for $1.1bn

20 August 2023
GQG, others acquire 8.1% stake in Adani Power for $1.1bn

US investment company GQG Partners, along with other investors, has spent $1.1bn (Rs90bn) to purchase an 8.1% stake in Indian energy company Adani Power, part of the Adani Group.

With this investment, GQG has now acquired $4.2bn worth of equity in the company since this March when Adani Group was facing allegations made by Hindenburg Research.

Hindenburg’s report alleged accounting fraud and stock price manipulation that triggered a share price collapse, wiping out $150bn in market value.

In March, promoters of the group sold $1.87bn worth of stakes in the group’s subsidiaries to GQG, which invested a further $400–500m in May.

GQG bought a 5.4% stake in Adani Enterprises, followed by a 6.5% interest in Adani Green Energy and a 2.5% stake in Adani Transmission, stated Zee Business.

The latest transaction also follows sovereign wealth fund Qatar Investment Authority’s acquisition of a 2.7% stake in Adani Green Energy for $470m.

The investment from GQG is claimed to be one of the largest block deals between a single buyer and a single seller in Indian history.

A person familiar with the transaction was quoted by Business Standard as saying: “The success of this investment programme underscores the Group’s unparalleled ability to raise substantial funds seamlessly across all its portfolio of companies.”

Proceeds from the transaction are expected to be used by the group to reduce its debt and for other general corporate needs.

Earlier this month, Adani Energy Solutions attained financial closure on a $1bn green HVDC (high-voltage direct current) link project that will provide more renewable energy to the Mumbai grid.

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