Adani Group Stocks Soar as GQG Partners Buys Minority Stakes
Adani Group Companies shares continue to climb as GQG Partners, a US-based investment firm, purchased minority stakes in four of its listed companies for ₹15,446 crore through block deals.
Adani Enterprises, the group’s flagship company, led the charge with over a 10% increase in share price, while Adani Power, Adani Green, Adani Transmission, and Adani Total Gas each saw a 5% upper circuit increase. Shares of Adani Ports and Special Economic Zone also rose over 3%, and Ambuja Cements and ACC Ltd were trading with gains. The BSE Sensex and Nifty also jumped nearly a percent in early deals.
GQG’s chairman and chief investment officer, Rajiv Jain, expressed confidence in the long-term growth prospects of these companies, stating that their investments take into account a five-year horizon. The investment comes amidst a Supreme Court investigation into Adani Group’s compliance with public shareholding norms and regulatory disclosures.
The group has recently faced allegations of fraudulent transactions and share price manipulation by US-based short seller Hindenburg Research, which it has dismissed as lies. Despite the accusations, the Adani group management, including group CFO Jugeshinder Singh, held roadshows in Singapore and Hong Kong last month to reassure investors that the company’s finances are under control, with plans to extend these to Dubai, London, and the US from March 7 to 15.
The investment by GQG Partners has provided a boost for Adani Group’s stocks, which have ended in positive territory for three consecutive days. With its focus on long-term growth and investment, GQG’s purchase may signal a positive outlook for the group’s future.
About Adani Group:
Adani Group is an Indian multinational conglomerate, headquartered in Ahmedabad. It was founded by Gautam Adani in 1988 as a commodity trading business, with the flagship company Adani Enterprises.
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