Adani Buys More Shares in Adani Enterprises and Adani Ports & Special Economic Zone Ltd

Gautam Adani-led Promoter Group Increases Stake in Adani Enterprises and Adani Ports

In a strategic move, the billionaire Gautam Adani-led promoter group has increased its stake in two prominent group companies, Adani Enterprises and Adani Ports and Special Economic Zone Ltd (APSEZ). This decision underscores the group’s commitment to maintaining a robust presence in high-growth sectors. The stake increase is part of a broader strategy for the Adani Group, which boasts an internationally diverse portfolio spanning sectors including energy, logistics, agribusiness, real estate, financial services, defense, and aerospace.

Adani Enterprises Stake Increase:

The promoter group has raised its stake in Adani Enterprises from 69.87 percent to 71.93 percent. This significant increase was achieved through a combination of market purchases and preferential allotments. Notably, this marks the second time in less than a month that the promoters of Adani Enterprises have increased their stake in the company. The previous increase occurred on August 7, when their stake rose from 67.65 percent to 69.87 percent.

APSEZ Stake Increase:

Similarly, the promoter group has increased its stake in APSEZ from 63.06 percent to 65.23 percent. This move was also accomplished through market purchases and preferential allotments. APSEZ is a crucial player in the Adani Group’s portfolio, focusing on ports and special economic zones.

Promoter Group Firms’ Participation:

Resurgent Trade and Investment Ltd and Emerging Market Investment DMCC, both promoter group firms, played a key role in these stake increases. They collectively purchased almost 1 percent and 1.2 percent stakes, respectively, in APSEZ through open market transactions.

GQG Partners’ Investment:

It’s noteworthy that these stake increases by the promoter group coincide with US-based boutique investment firm GQG Partners buying shares in Adani Group companies. GQG Partners has expanded its stake in APSEZ to 5.03 percent, up from 4.9 percent, through a bulk deal. The acquisition was carried out by purchasing equity shares of APSEZ. GQG Partners now holds a stake in five out of the 10 Adani Group companies.

Past Controversies and Resilience:

The Adani Group has weathered its share of controversies, including allegations of accounting fraud, stock price manipulation, and improper use of tax havens by US short-seller Hindenburg Research. These allegations triggered a significant stock market downturn, resulting in the erosion of approximately USD 150 billion in the market value of Adani group companies at its lowest point.

However, the Adani group has consistently denied all allegations and has embarked on a comeback strategy. This strategy involves reevaluating ambitions, scrapping acquisitions, pre-paying debt, and scaling back spending on new projects.

Despite the challenges, the Adani Group has managed to rebuild investor confidence with investments from firms like GQG Partners, QIA, and Bain Capital. These investments signal a renewed sense of trust in the group’s resilience and long-term potential.

In conclusion, the Adani Group’s recent stake increases in Adani Enterprises and APSEZ reflect a strategic commitment to its diversified portfolio and its goal of maintaining a strong presence in growth sectors. These moves, coupled with renewed investor confidence, are indicative of the group’s determination to overcome challenges and continue its upward trajectory in the global business landscape.

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