As Billions Of Dollars Flow In Adani Stocks, The Group Expands Its Business; Check Latest Adani deals!

The shockwave to financial markets that was caused by a US-based short-seller's report, seems to be fading as more money flows into Adani Group-backed stocks. The latest deal would be Promoter group firm Kempas Trade and Investment acquiring a 2.22% stake in the flagship firm Adani Enterprises. With mass block deals since March 2023, the port-to-power empire is expanding as well. The flagship announced the incorporation of two subsidiaries namely True Aromas and Sirius Digitech International in the latest development. The share price of Adani Enterprises has rallied by over 3% on BSE on Tuesday.

As per the regulatory filing, Kempas Trade and Investment acquired Adani Enterprises from August 7th to 18th, leading up to a 2.22% stake purchase in the company via the open market.

Reportedly, Kempas' latest buying is considered to be more than Rs 6,300 crore.

Meanwhile, US-based boutique investment firm GQG Partners has made one of the largest buying in the history of the Indian market via the open market, and that too in Adani shares.

Recently, GQG increased its stake in Adani Ports & Special Economic Zone (APSEZ) to 5.03%. GQG bought 15.203 crore equity shares or 7.73% stake in Adani Power --- amounting to Rs 4,244.76 crore last week.

Of the total 10 Adani stocks, GQG alone has increased its stake in five of them since March 2023. The first tranche of investment was Rs 15,446 crore ($1.87 billion) by GQG in four Adani shares in March. The leading US-based Global Equity investment boutique bought Rs 5,460 worth of shares in Adani Enterprises, Rs 5,282 crore shares in Adani Ports, Rs 1,898 crore shares in Adani Total Gas, and Rs 2,806 crore investment in Adani Green Energy during March.

Rajiv Jain, the chairman of GQG Partners in March said that Adani companies own and operate some of the largest and most important infrastructure assets throughout India and around the world. Gautam Adani is widely regarded as among the best entrepreneurs of his generation. And hence, he believes that the long-term growth prospects for these companies are substantial in Adani Group companies.

So far, GQG's investment in Adani firms has reached at least Rs 38,700 crore.

While foreign investors showing an impressive appetite for Adani shares, the Group is expanding its business. The latest would be the incorporation of two subsidiaries in the digital solutions and airport segment.

As per the regulatory filing on Monday, Adani Enterprises announced that its wholly-owned subsidiary Adani Airport Holdings has incorporated a Joint Venture Company namely "Tabemono True Aromas Private Limited" on 21 August 2023, with Travel Food Services for a strategic partnership to develop, operate and maintain various hospitality services and formats at multiple locations. Adani Airport will hold 75.01% stake in TTAPL.

TTAPL is incorporated in India and registered with the Registrar of Companies, Gujarat in Ahmedabad. TTAPL is yet to commence its business operations.

On the other hand, Adani Enterprises incorporated a wholly owned subsidiary namely "Sirius Digitech International Limited" on August 21. The new subsidiary will provide digital solutions and services. SDIL is also incorporated in India and registered with the Registrar of Companies, Gujarat at Ahmedabad and is yet to commence its business operations.

Gautam Adani's energy-to-port empire came under the radar of the Supreme Court after a US-based short seller Hindenburg Research dropped a mind-boggling report accusing the conglomerate of various allegations. The short seller's report which came in late January led to billions of dollars of the market rout, volatile markets, protests from oppositions and Sebi investigations which are still underway.

In its bombshell report dated January 24, 2023, Hindenburg accused the Adani Group of engaging in a brazen stock manipulation and accounting fraud scheme over decades.

Adani Group has continued to deny the allegations of Hindenburg and is getting back on track. And it looks like, the shocks of the short-sellers report and the $100 billion market rout that was witnessed in late January to March, is seem to be subsiding as Adani stocks recover significantly since the start of FY24.

On Tuesday, Adani Enterprises traded higher by 2% to Rs 2686.70 on BSE, at the time of writing. The majority of Adani's shares were in the green.