Shares of Adani Group companies, namely Adani Enterprises, Adani Ports and Special Economic Zone, Adani Green Energy, and Adani Transmission, experienced a significant surge, ranging from 5% to 10.65% on February 23, 2023. This happened after US-based global equity boutique GQG Partners completed a massive investment of Rs 15,446 crore in a portfolio of Adani Companies. The Nifty 50 index also witnessed a substantial rise of 226.95 points, or 1.31%, reaching 17,548.85.
The promoters of the Adani group sold shares worth Rs 15,446 crore in four of its listed entities to GQG Partners, which manages more than US$92 billion in client assets as of January 31, 2023. The promoters sold shares worth Rs 5,460 crore in Adani Enterprises, Rs 5,282 crore in Adani Ports & SEZ, Rs 2,806 crore in Adani Green Energy, and Rs 1,898 crore in Adani Transmission.
GQG Partners is a renowned name in the world of global and emerging markets investors, with a strong long-term track record. The chairman and CIO of GQG Partners, Rajiv Jain, expressed his excitement at initiating positions in the Adani companies. He highlighted that Adani companies own and operate some of the largest and most important infrastructure assets throughout India and the world. Jain added that Gautam Adani is widely regarded as among the best entrepreneurs of his generation. GQG Partners believes that the long-term growth prospects for these companies are substantial and is pleased to invest in companies that will help advance India’s economy and energy infrastructure, including their energy transition over the long-run.
Jugeshinder (Robbie) Singh, Group CFO of Adani Group, expressed delight in completing this landmark transaction with GQG. He emphasized the value of GQG’s role as a strategic investor in their infrastructure and utility portfolio of sustainable energy, logistics, and energy transition. Singh pointed out that this transaction marks the continued confidence of global investors in the governance, management practices, and the growth of Adani’s portfolio of companies.
The significant investment made by GQG Partners in Adani Group companies has boosted investors’ confidence in the Indian market. The Adani Group is known for its diversified business interests, ranging from ports, logistics, and energy to agribusiness, aerospace, and defense. The group has been focusing on sustainable business practices and green energy projects, which aligns with GQG Partners’ investment philosophy.
The investment made by GQG Partners is expected to have a positive impact on the Indian economy and energy infrastructure, considering Adani Group’s significant presence in these sectors. The Adani Group has been instrumental in developing crucial infrastructure projects, such as ports, airports, and highways, in India. The group has also been actively pursuing green energy projects, including solar and wind power. The investment from GQG Partners is expected to further accelerate the group’s plans to transition to renewable energy sources.
The investment made by GQG Partners is also expected to have a significant impact on the Adani Group’s future growth prospects. With GQG Partners’ experience in global and emerging markets investment, Adani Group can leverage their expertise to explore new markets and diversify its business interests. The investment is also likely to enable Adani Group to pursue larger projects and capitalize on emerging opportunities in the infrastructure, energy, and logistics sectors.
