Adani Group Promoters Likely To Cut Down Stakes Even Further To Shore Up Cash

Adani Group’s promoters are reportedly planning to sell more of their stakes in their group’s companies to seize new opportunities and create a cash reserve.

What Happened? The promoters of the Gautam Adani-led conglomerate are in talks with other global investors for more equity sales after selling shares worth around $3 billion (₹24,700 crore) to Rajiv Jain’s GQG Partners in recent months, sources told the Economic Times.

The strategy involves selling shares in listed group companies to build up cash reserves amid uncertain global investment conditions. The sources added that discussions are underway with multiple investors, and a transaction with a fund from West Asia is expected by September.

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The Adani family holds over 60% of shares in all listed group companies, except Adani Green Energy and ACC.

The group’s latest equity sale saw Fortitude Trade and Investment selling its entire 3.04% stake in Adani Transmission for about ₹2,665 crore.

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After an initial investment of $1.87 billion (₹15,403 crore) from GQG Partners, the promoters promptly repaid loans secured by pledging shares in listed firms, totalling $2.15 billion (₹17,709 crore). With most share pledges released, the focus now shifts to building a cash reserve, the sources told the business daily.

In January, Hindenburg Research accused the Adani Group of fraudulent activities and manipulating stock prices. The group strongly denied these allegations. While stocks initially declined, they have since recovered some losses.

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Posted In: EquitiesNewsAsset SalesMarketsAdani GroupGautam AdaniGQG Partners