Adani Group Sells Stake In Four Companies

The embattled Adani Group has sold minority stakes in four of its listed companies to US-based GQG Partners for Rs 15,446 crore, as the apple-to-airport conglomerate attempts to shore up liquidity ahead of a USD 2 billion debt repayment due in the coming months. It sold shares in Adani Enterprises Ltd (AEL), Adani Ports and Special Economic Zone Ltd (APSEZ), Adani Transmission Ltd (AEL), and Adani Green Energy Ltd (AGEL), its flagship incubation firm.

"GQG is investing in Adani portfolio companies which own and operate the largest airport and port platform in India, largest private sector transmission and distribution platform in India, and that will generate about 9 percent of India's renewable energy capacity by 2030," the company said in a statement on Thursday.

The deal took place through secondary market block deals.

"The investment has made GQG a key investor in the development and growth of critical Indian infrastructure," the company said.

The share sale is part of the Gautam Adani-led group's recovery strategy after a devastating report from an American short seller reduced the conglomerate's market value by more than USD 140 billion.

The group has a gross debt of Rs 2.21 lakh crore, about 8% of which is due by the end of the next fiscal year.

In AEL, where the promoters held 72.6 percent of the company previous to the sale, 3.8 crore shares or 3.39 percent of the company were sold for Rs 5,460 crore.

In APSEZ, where promoters owned 66%, 8.8 crore shares, or 4.1 percent of the company, were sold for Rs 5,282 crore.

ATL's 2.8 crore shares, or 2.5 percent interest, were sold for Rs 1,898 crore, with promoters holding 73.9 percent.

In AGEL, where promoters held 60.5 percent of the stock, 5.5 crore shares or 3.5 percent of the company were sold for Rs 2,806 crore.

"GQG Partners, a leading US-based global equity investment boutique, announced today the completion of a Rs 15,446 crore (USD 1.87 billion) in a series of secondary block trade transactions in the Adani portfolio companies - APSEZ, AGEL, ATL and AEL," according to the announcement.

Jefferies India Private Ltd acted as the transaction's sole broker.  "I am excited to have initiated positions in the Adani companies," stated Rajiv Jain, Chairman and CIO of GQG Partners.