Adani hikes stake in two group companies

The billionaire Gautam Adani-led promoter group has increased its stake in two of the group's listed companies as part of a strategy to recover from damaging reports. They raised their stake in flagship company Adani Enterprises to 71.93% from 69.87%, marking the second increase in less than a month.

Additionally, the promoter group raised its stake in Adani Ports and Special Economic Zone Ltd from 63.06% to 65.23%. These stake increases followed purchases by Resurgent Trade and Investment Ltd and Emerging Market Investment DMCC, both promoter group firms, in Adani Ports and Special Economic Zone Ltd. For Adani Enterprises Ltd, shares were bought by Kempas Trade and Investment Ltd and Infinite Trade and Investment Ltd. These transactions occurred between August 14 and September 8.

This development comes shortly after US-based boutique investment firm GQG Partners increased its stake in Adani group firms, particularly Adani Ports & Special Economic Zone (APSEZ), where it now holds a 5.03% stake. GQG has also invested in other Adani Group firms, including Adani Power Ltd.

The Adani Group had faced allegations of accounting fraud and improper practices by US short-seller Hindenburg Research, which led to a significant decline in market value. However, the group has been working on a comeback strategy, including debt reduction and reevaluating its ambitions.

Despite the initial setback, GQG has continued to invest in Adani companies, and their shares have gradually recovered some of their losses. Additionally, other investors like Qatar Investment Authority (QIA) and Bain Capital have shown confidence in Adani Group firms, injecting funds into various projects.

Adani Enterprises, Adani Transmission, and Adani Green Energy have also received board approvals for primary issuances through share sales to investors. These companies are actively involved in green hydrogen and renewable energy projects with ambitious capacity targets.