GQG Partners Invests $1.1 Billion in Adani Power, Acquires 8.1% Stake Amidst Market Challenges

GQG Partners Invests $1.1 Billion in Adani Power
GQG Partners Invests $1.1 Billion in Adani Power

by Tanushree Jaiswal Last Updated: Aug 17, 2023 - 01:38 pm 425 Views

US-based GQG Partners invests $1.1 billion in Adani Power, acquiring 8.1% stake (31 crore shares) amid challenges. Adani family sells stakes for ₹9,000 crore. Despite recent controversies, GQG's bold move demonstrates confidence in Adani's growth potential. Previous investments by GQG and others also highlight support for Adani's recovery. Adani Group focuses on revamping goals and repaying debts after facing allegations and market decline.

GQG Partners Invests $1.1 Billion in Adani Power

In an exciting move that's making waves in the investment world, a US-based company called GQG Partners has just put a lot of money – $1.1 billion, to be exact – into Adani Power. This is like buying a big piece of the company, about 8.1% of it. They got a whopping 31 crore shares, which is a huge deal in buying and selling company parts.
The people who started Adani Power, the Adani family, decided to sell part of their ownership to GQG Partners for a really impressive ₹9,000 crore. But why did GQG Partners want to do this? Well, it turns out that Adani Power has been having a bit of a tough time lately. Some people were saying not-so-nice things about the company, which made its shares go down in price. But GQG Partners didn't let that scare them away – they actually decided to invest even more in Adani Power.

The person behind GQG Partners, Rajiv Jain, played a big role in making this investment happen. And this isn't the first time they've shown interest in Adani. Just a little while ago, they bought a 3% piece of another part of Adani, called Adani Transmission. That cost them ₹2,666 crore. This new investment comes right after GQG Partners put in a ton of money in March, around ₹15,446 crore. That helped them buy parts from four different Adani companies: Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission, and Adani Enterprises.

At the same time, there's another interesting thing happening. Some people who really believe in Adani Power also decided to buy more of its shares. This shows they're feeling good about where the company is headed. But even though some people are excited about this, the price of Adani Power's shares actually went down a little bit recently. On one day, they went down by 2.29% to ₹279.30 each. However, experts think that with all this new money and support from prominent investors like GQG Partners, things could get better for the company.

This isn't the first time GQG Partners has put their money into Adani. Since May, they've been putting money into other parts of Adani's big group of companies, like those dealing with ports and energy. The Adani family used to own almost 75% of Adani Power, but they sold a good chunk of it – 8.1% – to GQG Partners. This happened at an average price of about ₹279.17 for each share. GQG Partners didn't stop there. They also bought parts of Adani Enterprises, Adani Green Energy, and Adani Transmission before.

Earlier this year, there was a report that said Adani's group of companies was doing some things that didn't look so good. This made the companies' value go down a lot – they lost around $150 billion at one point. But the Adani group said those claims weren't true and devised a plan to fix things. They decided to change some of their goals, pay back debts, and spend less money on new things for a while.

The Adani family also sold parts of their companies for a lot of money – $1.38 billion, which is about ₹11,330 crore. They used some of that money to make their companies even better. These companies now want to sell more parts of themselves to people who want to invest. Adani Enterprises wants to get ₹12,500 crore, Adani Transmission hopes for ₹8,500 crore, and Adani Green Energy aims for ₹12,300 crore.

As things keep changing and Adani Power works on getting better, the big investments from GQG Partners and others show that people believe in the company's future. It's like a sign of support and trust in Adani Power's ability to grow and overcome its challenges.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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