A person familiar with the development confirmed this on the condition of anonymity.

With the latest stake purchase, GQG Partner’s total investment in Adani Group firms has gone up to ₹26,445 crore in just over three months, which followed a damning report on the Gautam Adani-led conglomerate by US-based short-seller Hindenburg Research. The seller of the shares were the promoters of Adani group, which would mean that the monies invested by GQG will accrue to the promoters. The share sale includes Adani group promoter entity Fortitude Trade and Investment Ltd selling 33.92 million shares to GQG Partners at ₹786.17 each for ₹2,666.47 crore.

While the embattled group faces a multi-regulatory scrutiny after Hindenburg alleged the group of pulling the “biggest con in corporate history”, Jain’s GQG Partners, which manages over $92 billion in assets globally, continues to bet on the embattled group, particularly after reaping quick super-normal gains from its 3 March investments in Adani group firms.

On Friday, GQG Partners bought around 33 million shares in Adani Transmission at ₹797.85 each, while the stock of the country’s largest private sector power distribution company was trading much lower in the open market.

In March, GQG bought stakes in four Adani group firms from the promoters for ₹15,446 crore and now the value of this investment has gone up by over 50% to about ₹23,300 crore.

GQG’s fresh round of investment comes despite reports that regulators, including the Securities Exchange Commission and Indian market regulator Sebi are investigating the group.

However, throughout the past week the shares of Adani group firms have been trading under pressure after certain reports suggested that US regulators are examining the veracity of the allegations made by Hindenburg Research.

Separately, as per a Supreme Court directive the group is under an investigation by India’s markets regulator for any potential round-tripping of funds through 13 suspicious FPIs. The apex court is expected to hear the case and analyse the Securities and Exchange Board of India’s (Sebi) probe report on 14 August.

The series of share-sale by the promoters of Adani Group over the past four months implies a change in the group’s strategy as an aftermath of the Hindenburg report.

Before Hindenburg put out its report on 24 January, the group was planning a ₹20,000 crore follow-on public offering (FPO) via sale of the group’s listed flagship Adani Enterprises Ltd.’s shares.

The proceeds of the FPO, which was called off soon after the Hindenburg report, was meant to be used for the group’s expansion from AEL’s books of account. On the other hand, the money from the series of share sales by Adani’s promoters to India-born Jain’s GQG Partners as the only investor, will be solely benefiting Gautam Adani’s family and other promoter group associates.

With Friday’s purchase, GQG’s stake in Adani Transmission will go up to 5.45%. The asset manager has upped its stake in AEL to 4.96%, to about 6.32% in Adani Green Energy Ltd. and about 4.1% in Adani Ports and SEZ Ltd.

On Wednesday, GQG Partners acquired stakes worth $1 billion in AEL and AGEL from promoter group entities including SB Adani Family Trust and Infinite Trade and Investment Ltd.

The series of investment from GQG Partners has resulted in a sharp rally in Adani group firms after the group suffered a massive $150 billion erosion in market value soon after the Hindenburg report release.

Shares of AEL, AGEL, Adani Ports and Adani Transmission have gone up by 134.4% to ₹2,383.60 apiece, by 115.23% to ₹945.60, by 87% to ₹738.90 and by 21.8% to ₹767.50 per share respectively from their 52-week lows, which were hit after the Hindenburg report’s allegations.

The rally has added over ₹29,000 crore to investor wealth in the 10 Adani group companies, raising their combined market cap to over ₹10 trillion.

GQG’s Jain had told Mint earlier that he was very bullish on the group’s business prospects. “We are very bullish on the group as it is playing a very important role in infra buildout for India. We want to be strategic partners in helping India build world-class infrastructure.”

Updated: 01 Jul 2023, 12:55 AM IST