Adani Power gained 3%, and the share price of Adani Power surged by over 3 percent during the morning trade on August 17th, recovering from the losses incurred the previous day. This upward movement was triggered by the revelation that GQG Partners had purchased an 8.1 percent equity stake in the company. The morning trading session saw Adani Power’s stock price reach a peak of Rs 288.3, surpassing the previous day’s closing price of Rs 279.9.
On August 16th, Adani Power shares experienced a temporary intraday decline of up to 4 percent before partially recovering to end the day at Rs 279.9. This decline was prompted by reports of a potential sale of an 8.1 percent equity stake. Post-market closure, it was disclosed that GQG Partners, led by Rajiv Jain, had acquired the stake for around Rs 9,000 crore ($1.1 billion).
By 9:36 a.m., Adani Power shares were actively traded at Rs 287.40 on the National Stock Exchange, showcasing an impressive 2.6 percent surge from the preceding closing value.
Table of Contents
Here is a detail of how Adani power gained 3%
During March, GQG Partners, a US-based firm, injected a substantial $1.87 billion into Adani Enterprises, Adani Ports, Adani Transmission, and Adani Green Energy. This strategic move came in the wake of the Adani group’s significant market value decline, triggered by the release of Hindenburg Research’s short-selling report. In June, GQG Partners further bolstered their investment with an additional $1 billion across Adani group companies.
The Adani group’s stocks encountered a steep decline following the emergence of governance concerns raised by the US-based short-seller. This situation resulted in Adani Enterprises alone witnessing a staggering 75 percent reduction in market capitalization within a mere month. Collectively, the group’s companies saw a total erosion of approximately Rs 10 lakh crore in market capitalization.
READ IT:- Cipla Stock Jumps 9% Today On Q1 Results; Should You Buy, Sell or Hold Cipla Shares?
However, these stocks have since orchestrated an impressive recovery, particularly highlighted by Adani Enterprises surging by nearly 150 percent over the past five months. GQG Partners has been reaping substantial gains from its investments in Adani group entities since March, effectively elevating the total value of their investments to approximately $4 billion.
Adani Power’s Latest Bulk Deal Details
According to the information of a tremendous transaction disclosed through Adani Power to Indian exchanges, a widespread single seller and single buyer transaction was executed on August 16, 2023, by Goldman Sachs GQG Partners International Opportunities Fund. The deal, valued at ₹2,876 crore, was conducted as a bulk transaction. Additional bulk deals also transpired on the same date involving Adani Power shares.
According to information available on the BSE website, GQG Partners Emerging Markets Equity Fund, another US-based investor, acquired 4,90,30,009 shares of Adani Power at a price of ₹279.15 per share. This investment amounted to approximately ₹13,68,67,27,012.35, or roughly ₹1,368 crore, injected into the Adani group company.
Conversely, profit booking was observed in Adani Power shares on August 16, 2023. Afro Asian Trade and Investments Ltd divested itself 26,54,85,675 Adani Power shares at a rate of ₹279.18 per share. This divestiture translated to the institutional investor selling Adani Power shares valued at approximately ₹74,11,82,90,746.5, or around ₹7,412 crore.
READ IT:- Why India’s Favorite Meme Stock ITC Share Price Fell More Than 4% Today After Demerger Announcement
See Bulk Deal Details Below
Similarly, Worldwide Emerging Market Holding Limited divested 4,65,14,325 shares of Adani Power at a rate of ₹279.16 per share. Consequently, this institutional investor liquidated Adani Power shares with a total value of approximately ₹12,98,49,38,967, equivalent to about ₹1,298.50 crore.
GQG Partners’ Strategic Move
The driving force behind Adani Power’s recent resurgence is the revelation of GQG Partners as the buyer of an 8.1% stake in the company. This strategic move by the global investment firm has injected renewed confidence and optimism into Adani Power’s stock. GQG Partners’ decision to invest in the company signifies a vote of confidence in its future prospects and growth potential within the energy sector.
Implications for Adani Power
The acquisition of a significant stake by GQG Partners is poised to bring about a series of positive implications for Adani Power. The injection of capital and expertise from a renowned global player is likely to bolster the company’s financial standing and enhance its operational capabilities. Moreover, GQG Partners’ involvement could potentially open doors to new avenues of collaboration and expansion, propelling Adani Power toward sustained growth.
Market Sentiment and Investor Confidence
The revelation of GQG Partners’ stake acquisition has undoubtedly influenced market sentiment and investor confidence in Adani Power. The 3% gain in stock value following this announcement reflects the positive reception of the news by investors and the financial community. This renewed enthusiasm underscores the significance of strategic partnerships and acquisitions in driving market dynamics and stock performance.
Looking Ahead
As Adani Power gains 3%, recovering from the previous day’s loss, the spotlight remains on the company’s future trajectory. The collaboration with GQG Partners is poised to play a pivotal role in shaping Adani Power’s growth story in the coming months and years. Investors and industry observers will be closely monitoring the execution of this partnership and its impact on the company’s overall performance within the energy sector.”
Disclaimer
The insights and investment recommendations provided by financial experts on Moneycontrol represent their personal opinions and do not necessarily reflect the stance of the website or its management. Moneycontrol strongly advises users to seek advice from certified experts before making any investment choices.
Also Read:-
Oriana Power IPO Allotment: Here’s How You Can Check Your Application Status
SBFC Finance IPO Allotment Today: Check Your Application Status
2 thoughts on “Adani Power Gained 3%, Recovering The Previous Day’s Loss After GQG Revealed As Buyer Of 8.1% Stake”