Billionaire Gautam Adani is firming up his grip on his empire and has been raising stakes in some of his key companies over the last month or so. About $2.6 billion would have been spent so far on this exercise, sources said.
In the wake of the revelations made by Hindenburg Research in January against the group, Adani resorted to selling small stakes in some of his companies to US investment firm GQG Partners to instil confidence among investors. The funds raised were used to pay off share-backed financing and release pledged shares, paying off short-term loans and funds raised via the issue of debt securities, as well as part of a bridge loan taken to finance the purchase of ACC and Ambuja Cement.
Adani sold stakes in four group firms in March and then again in June. In early August, he sold a stake in Adani Power again to GQG Partners. In the same month, a promoter entity also sold a stake in Adani Green Energy to Qatar Investment Authority. In July, the Adani family entered a transaction to sell off its entire stake in Adani Capital and Housing. The promoter group has raised over $5 billion through such strategic sales.
In recent weeks, the process has reversed, with Adani carrying out calibrated purchases of shares in group companies where promoter stake had been reduced. Raising a stake in a company by a promoter usually signals confidence and commitment to it and bolsters investor confidence.
In Adani Energy Solutions (formerly Adani Transmission), the promoter group has raised its stake by 2.15 per cent between August 16 and September 14, according to exchange disclosures. About 2.4 crore shares were purchased by promoter entity Geltbery Trade and Investment Ltd.
After the stake purchase, the promoter stake has gone up to 72.56 per cent. As of December 31, 2022, the promoter stake in the company was 74.19 per cent, which reduced to 71.65 per cent at the end of March and then to 68.28 per cent in June.
In Adani Ports promoter entities Resurgent Trade and Investment and Emerging Market Investment DMCC acquired 4.7 crore shares or 2.17 per cent equity from August 14 to September 8 to take its stake to 65.23 per cent, almost the same level that it was at the end of last December. It had reduced to around 61 per cent in the March quarter.
In its flagship firm, Adani Enterprises, Kempas Trade and Investment and Infinite Trade and Investment acquired 2.35 crore shares or 2.06 per cent equity to take the promoter stake to 71.93 per cent. These shares were acquired in tranches between August 21 and September 7.
The promoter stake in Adani Enterprises fell to 69.23 per cent as of March-end from 72.63 per cent a quarter ago and then further to 67.65 per cent as of June-end.