Adani group stocks surge post block deal announcement

On Thursday, the Adani family, through its trust, sold ₹15,446 crore worth of its stake in four group companies to US-based investment firm GQG Partners, founded by investment manager Rajiv Jain.

The fresh stream of money sent stocks higher. At 11 am, Adani Enterprises was at 1,787 – up ₹180.30 or 11.22%; Adani Ports traded at ₹667.80 – up ₹44.60, or 7.16%. A few touched upper circuit – Adani Power at ₹169.45 – up ₹8.05, or 4.99%; Adani Transmission at ₹743.75 – up ₹35.40, or 5%; Adani Green Energy at ₹562 – up ₹26.75, or 5%; Adani Total Gas at ₹781.85 – up ₹37.20, or 5%; Adani Wilmar at ₹418.30, up ₹19.90, or 4.99%.

GQG Partners bought 88 lakh shares of Adani Transmission at ₹668.4 apiece, 90 lakh shares of Adani Enterprises at ₹1,408.25 apiece, 2.04 crore shares of Adani Ports at ₹596.2 apiece, 1.38 crore shares of Adani Green Energy at ₹504.60 apiece.

Experts say the deal could lend some credibility to the crisis-hit Adani group and bring in funds at the same time. The group has been in a firefighting mode, trying to soothe investors since the US-based research firm released the report.

After marking the first big investment of $1.87 billion in the Adani group since the release of US based short seller Hindenburg report, GQG Partners Inc saw a 3% fall in its Australian-listed shares on Friday.

The report has alleged the group of fraud and malpractices, raising questions about involvement of Gautam Adani’s brother.

Since then the company’s stocks have been in a tizzy and have made market participants wary dampening the overall market sentiment. Gautam Adani even lost his position in Bloomberg Billionaires Index as stock fall eroded his wealth.