Adani Power increases by more than 3% as GQG Partners purchases an 8.1% stake; more

Following the purchase of an 8.1% interest in the business by US-based investment firm GQG Partners for $1.1 billion, shares of Adani Power increased by more than 3% in early trading on Thursday. On the BSE, Adani Power shares increased as high as 3.20 percent to Rs 288.25 a share.

Earlier, on August 16, on news of the sale of an 8.1% equity holding, Adani Power shares fell as much as 4% intraday before recovering part of the losses to close the day at Rs 279.9. The purchase was made by Rajiv Jain’s GQG Partners for around Rs 9,000 crore ($ 1.1 billion) after the market closed.

The US-based GQG Partners bought $1.87 billion in Adani Enterprises, Adani Ports, Adani Transmission, and Adani Green Energy in March, after the Adani Group had seen its market value drop by about half as a result of the publication of the study by short-seller Hindenburg Research. The fund then invested an additional $1 billion in Adani Group enterprises in June.

After the US-based short-seller raised governance issues, the Adani group’s stock price plummeted. Adani Enterprises saw its market capitalization drop by up to 75% in a single month. The market valuation of the group companies as a whole decreased by around Rs 10 lakh crore.

Adani Enterprises’ increase of roughly 150% over the last five months exemplifies the strong comeback in the stock market. Since March, GQG has had spectacular growth on investments in Adani Group firms, bringing the total value of its holdings to almost $4 billion.