GQG Partners Emerging Markets Equity Fund has turned out to be the largest investor in the block deal window of the Adani Group-owned Ambuja Cements Limited. On 23 August 2024, the US-based GQG Partners Emerging Markets Equity Fund obtained 1.71 crore shares in Ambuja Cements for INR 1,679 crore. This was at INR 625.5 a piece. This involves a 0.69% stake in Ambuja Cements. This is a huge win for the Adani Group as it continues to acquire the trust of long-standing investors after the Adani Crisis.
The Sale of Shares:
Holderind Investments Limited, an esteemed company owned by Gautam Adani and his family, has recently divested a 2.8% share in Ambuja Cements. This was done for a substantial amount of INR 4,251 crore. GQG Partners also made an impressive investment in the company. An investment worth INR 80,000 crore was made. This made GQG Partners the largest institutional investor in the Adani Group entities. The fund led by Rajiv Jain has strategically enhanced its investment. The company had initially entered the market with an acquisition in March 2023.
Over the years, Rajiv Jain has made significant investments in Adani Group companies which helped the conglomerate recover from the Adani Crisis. These investments were made after the Hindenburg Research report was published. Among the 10 companies which are listed under the Adani Group, GQG Partners in multiple prominent companies like Adani Green Energy, Adani Enterprises, Adani Energy Solutions, Adani Power, Adani Ports and SEZ, and Ambuja Cements.
The Hindenburg Blow:
In February 2023, after the Hindenburg Report was published, the Adani Group companies’ total market capitalisation decreased to less than INR 7 lakh crore. By June 2024, this figure once again reached a peak value of INR 19.4 lakh crore. However, there has been a 12% decrease in the valuation. Since then, the current market capitalisation stands at INR 17.1 lakh crore. Because of the Hindenburg crisis, the Adani Group’s share values came down drastically. The company lost a lot of investors.
However, the Adani Group always maintained a resilient approach. It tried to dilute its existing assets and carry out its business operations with full force. The company also made enormous efforts to gain back the trust of the investors. The investigations continued for months post which the Supreme Court gave its verdict in favour of the Adani Group. This caused the Adani Group to bounce back to its initial position of glory. It once again started carrying out its business operations with full force.
GQG’s Investment in Adani Group of Companies:
GQG’s investments in 6 Adani Group stocks: Adani Green Energy, Adani Enterprises, Adani Energy Solutions, Adani Ports and SEZ, Ambuja Cements, and Adani Power amounts to INR 80,000 crore at the end of August 2023. A significant part of this investment was made in two firms which are Adani Power and Adani Green Energy. As per recent reports, Rajiv Jain’s company holds a stake exceeding 7% in each of the two companies. Considering the overall investment portfolio, the investor has a total stake of around 5.2% in the broader group of companies.
GQG has the highest holding in Adani Power. It has an ownership of 7.73%. The company holds a 7% stake in Adani Green Energy and 6.6 % in Adani Energy Solutions. The Group’s stock values have surged by 20.2% in 2024. This caused the Adani Group to earn excellent revenue for itself. It was also able to bounce back from the Adani Crisis.
Other Big Investors:
Big investors like GQG Partners, National Pension System Trust, and SBI Life Insurance acquired shares in Ambuja Cements from the Adani family on 23rd August. Through the sale of shares, the Adani family has been able to raise INR 4,251 crores. This will allow the companies operating under the Adani Group to boost their investment activities. The companies will also be able to earn an excellent source of revenue.
The investments are a part of the Adani Group’s ongoing strategy to diversify its extensive portfolio which currently holds a valuation of 125 billion USD. As per recent data, GQG Partner was the top buyer of shares as it bought shares worth INR 1,679 crore in Ambuja Cements. National Pension System Trust acquired shares worth INR 525 crore SBI Life Insurance brought shares worth 500 crore. Some of the other investors include Mirae Asset Mutual Fund and Morgan Stanley Asia Singapore. In total, the block deals included 24 investors who acquired multiple stakes in Ambuja Cements. Some other prominent names were Axis Mutual Fund, Invesco Mutual Fund, and ICICI Mutual Fund.
Conclusion:
With its extraordinary business strategies, the Adani Group has been able to build an excellent position for itself in this business world. In the upcoming years also, it will continue to take remarkable steps which will lead it to the path of prosperity and success.
