BENGALURU (Reuters) – U.S. boutique investment firm GQG Partners Inc was the largest buyer in a stake sale of India’s Ambuja Cements by an Adani-owned company on Friday.
Adani-owned Holderind Investments, which had a nearly 51% stake in Ambuja Cements as of June-end, had offered a 2.8% stake worth $500 million.
WHY IT’S IMPORTANT
GQG Partners was the first to invest in Adani group companies after a report by short-seller Hindenburg Research triggered a stock rout early last year. The firm’s $1.87 billion infusion in four Adani group companies helped restore some confidence in the conglomerate.
It was also among the 50 investors in Adani Energy Solutions’ recent $1 billion share sale.
On Thursday, broadcaster CNBC TV-18 reported that the ports-to-power conglomerate is mulling a stake sale in Adani Power too, beside Ambuja, to trim its debt.
The group’s flagship Adani Enterprises is likely to launch a $1 billion share sale in mid-September, Reuters reported earlier this month.
BY THE NUMBERS
GQG Partners purchased 26.8 million shares through block deals, data from the National Stock Exchange showed. SBI Life Insurance lapped up the second-largest stake in the sale, buying 8 million shares.
Other buyers include Norges Bank, The Vanguard Group and Morgan Stanley. Among the Indian mutual funds that participated were Axis Mutual Fund, ICICI Prudential Mutual Fund, and Tata Mutual Fund.
All blocks but one were sold at 625.5 rupees per share, a 1% discount to Thursday’s closing price. One block comprising 161,000 shares was sold at 625.55 rupees.
Holderind sold 68 million shares in blocks.
GQG Partners owned a 1.35% stake in Ambuja Cements as of June 30, per exchange data.
MARKET REACTION
Shares of the cement maker jumped as much 4.5% on Friday, before fizzling out most of its gains to close up 0.3%.
(Reporting by Varun Hebbalalu and Hritam Mukherjee in Bengaluru; Editing by Vijay Kishore)
