Why This Adani Stock Is Surging 5% Today

Adani Green Energy shares were on the up after a Qatar Investment Authority’s (QIA) subsidiary picked up a 2.8% stake in the Adani Group entity, helping the company raise about $500 million (₹4,140.5 crore) to cut promoter-level debt.

What Happened? QIA subsidiary INQ Holding, has bought 4.3 crore shares of Adani Green Energy, which is 2.7% of its equity, for ₹3,956 crore at ₹920 per share. In contrast, Adani Green’s promoter entity, Infinite Trade and Investment, sold 4.5 crore shares or 2.8% of its equity for ₹4,142 crore at ₹920.43 each.

This isn’t the first time Qatar Investment Authority has invested in the Adani Group; they previously bought a 25% stake in Adani Electricity Mumbai in 2020.

Why it matters? The Adani Group’s promoters have been offloading small shares in their companies to cover share-backed loans. GQG Partners has also acquired shares in Adani firms in the past, some directly from the promoters. In March, Gautam Adani announced that they have cleared over ₹16,561 crore ($2 billion) in margin-linked, share-backed debts.

Furthermore, last month, Adani Green’s board gave the green light to raise ₹12,300 crore through a qualified institutional placement. They plan to initiate this once the market becomes more stable later in the year.

Price Action: Adani Green Energy shares were trading 4.45% higher at ₹1008.85 shortly after market open on Tuesday.

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Posted In: EquitiesMarketsMoversTrading Ideasadani green energyQatar Investment Authority