Australia-listed investment firm GQG Partners on Wednesday invested $1.1 billion (Rs 9,000 crore) in Adani Power by buying 8.1 per cent stake from the Adani family through multiple block deals.

With this investment, GQG Partners has bought shares worth Rs 34,000 crore ($4.2 billion) in Adani group companies since March this year. Interestingly, the move comes days after Qatar Investment Authority, a sovereign fund, bought 2.7 per cent stake in Adani Green Energy for Rs 3,920 crore.

Shares of Adani Power closed at Rs 279.30, down 2.2 per cent, on the BSE.

The historic trade, which has been marked as the biggest block between a single buyer and a single seller in Indian history, is a stock exchange transaction of 31 crore shares, which is almost half of Adani Power’s total equity, said a banker associated with the development. represents 8.1 percent.

“The success of this investment program underlines the group’s unique ability to seamlessly raise substantial funds across its portfolio of companies,” he added.

The proceeds will be used by the Adani Group to reduce its debt and for other general corporate purposes.

GQG Partners has always been known for making contrarian bets and has nearly $100 billion in assets under management. Its holdings in Indian companies including ITC, Sun Pharmaceutical Industries, State Bank of India, ICICI Bank and Housing Development Finance Corp (now merged with HDFC Bank) are worth about $13 billion.

In March this year, GQG Partners acquired shares worth about $2 billion in four Adani companies for the first time.

In May, it increased its stake in Adani Group by nearly 10 per cent by buying shares from the market.

Two months ago, GQG Partners and other investors bought an additional stake in Adani Transmission for about $1 billion.

Bankers said at the core of these significant investments is the broader story of India’s ongoing energy transformation. As the economy continues to grow, thermal power continues to play a vital role in strengthening India’s energy security. Bankers said that as the global conversation around sustainable energy gains momentum, it is necessary to recognize the continued relevance of thermal energy within the larger framework of energy sources.

Besides, bankers said Adani Power’s 360-degree energy suite comprising renewable energy, power generation, transmission, gas and more reflects a comprehensive perspective on India’s energy landscape.

He said that India stands at a turning point in balancing its huge energy demands with global sustainability commitments.

In this context, companies such as Adani Power with their vast and diversified portfolio play an important role.

Adani Power recently commissioned the 1.6 GW ultra-supercritical Godda power plant and is now supplying power to Bangladesh, marking the group’s foray into international power projects.

He added that their enterprises are spread across the gamut of the energy sector, reaffirming the importance of a diversified approach to ensuring energy security and sustainability.

In January this year, an adverse report by US-based short seller Hindenburg Research resulted in loss of substantial market capitalization in the group’s shares, but after the Adani family sold part of its shares in various group companies and prepaid part of its debt. Shares improved.


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