Rajiv Jain-backed GQG Partners buys 8.1% stake in Adani Power 

US-based boutique investment firm GQG Partners has invested $1.1 billion in Adani Power for an 8.1 per cent stake, news agency PTI reported citing sources.

GQG Partners bought 31 crore shares of Adani Power in the largest ever secondary market equity deal, they said, adding that promoter Adani family sold the stake for over Rs 9,000 crore ($1.1 billion).

Last month, GQG Partners ramped up its shareholding in two Adani group companies to more than 5 per cent in signs of its confidence in the group despite the damning report of a US short seller in January. 

In June, GQG bought $1 billion (Rs 8,265 crore) worth of additional stakes in the group's flagship Adani Enterprises Ltd and renewable energy firm Adani Green Energy Ltd. The stake sale in Adani Enterprise was through one block deal, where GQG bought 1.79 crore, or 1.58 per cent, more shares to take its holding to 6.15 crore shares or 5.4 per cent of the total.

Gautam Adani and his brother Rajesh S Adani had sold the shares of the promoter family. This reduced the Adani family's stake in Adani Enterprises to 67.65 per cent from 69.23 per cent previously.

In Adani Green Energy, GQQ bought 4.47 crore or 2.82 per cent additional shares to take its holding to 10.35 crore shares or 6.54 per cent of the total, the filings showed. 

Adani Group had denied all allegations by Hindenburg and is plotting a comeback strategy that includes recasting its ambitions, scrapping acquisitions, pre-paying debt to address concerns about its cash flows and borrowings and scaling back its pace of spending on new projects.

In March, promoters sold stakes worth Rs 15,446 crore ($1.87 billion) in four group companies to GQG Partners. GQG ramped up that investment with an additional purchase of shares worth $400-500 million in May.

Prior to the June 28 acquisition, GQG held 4.35 crore shares or 3.82 per cent in Adani Enterprises Ltd and 5.88 crore shares or 3.72 per cent in Adani Green Energy Limited.

GQG investments anchored the Adani group's recovery from the losses sparked by Hindenburg, though all 10 companies are still trading below the levels before the January 24 report.

(With inputs from PTI)