Adani Group sells stake in 4 companies for Rs 15,446 crore
New Delhi, Mar 2: The embattled Adani Group has sold minority stakes in four of its listed companies to US-based GQG Partners for Rs 15,446 crore as the apple-to-airport conglomerate, recovering from a sell-off triggered by a short-seller report, looks to shore up liquidity ahead of the USD 2 billion debt repayment due in the coming months.
It sold shares in flagship incubating firm Adani Enterprises Ltd (AEL), port company Adani Ports and Special Economic Zone Ltd (APSEZ), electricity transmitting firm Adani Transmission Ltd (AEL) and renewable energy firm Adani Green Energy Ltd (AGEL).
"GQG is investing in Adani portfolio companies which own and operate the largest airport and port platform in India, largest private sector transmission and distribution platform in India and that will generate about 9 per cent of India's renewable energy capacity by 2030," it said in a statement on Thursday.
The deal happened through secondary market block deals.
"The investment has made GQG a key investor in the development and growth of critical Indian infrastructure," it added.
The share sale is part of the Gautam Adani-led group's comeback strategy after a damning report from an American short seller wiped out more than USD 140 billion off the conglomerate's market value.
The group has a gross debt of Rs 2.21 lakh crore, about 8 per cent of which is due for repayment by the end of next fiscal year.
In AEL, where the promoters held 72.6 per cent stake prior to the sale, 3.8 crore shares or 3.39 per cent stake was sold for Rs 5,460 crore.
In APSEZ, where promoters held 66 per cent stake, 8.8 crore shares or 4.1 per cent shareholding was sold for Rs 5,282 crore.
As much as 2.8 crore shares or 2.5 per cent stake in of ATL, where promoters held 73.9 per cent shareholding, was sold for Rs 1,898 crore.
In AGEL, where promoters held 60.5 per cent shareholding, 5.5 crore shares or 3.5 per cent stake was sold for Rs 2,806 crore.
"GQG Partners, a leading US-based global equity investment boutique, announced today the completion of a Rs 15,446 crore (USD 1.87 billion) in a series of secondary block trade transactions in the Adani portfolio companies - APSEZ, AGEL, ATL and AEL," the statement said.
Jefferies India Private Limited acted as the sole broker for the transaction.
Rajiv Jain, Chairman and CIO of GQG Partners, said, "I am excited to have initiated positions in the Adani companies."
"Adani companies own and operate some of the largest and most important infrastructure assets throughout India and around the world. Gautam Adani is widely regarded as among the best entrepreneurs of his generation.
"We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India's economy and energy infrastructure, including their energy transition over the long-run," he said.
Adani Group CFO Jugeshinder (Robbie) Singh said the transaction with GQG marks the continued confidence of global investors in the governance, management practices and the growth of Adani portfolio of companies.
India's total electricity generating capacity is more than 390 GW and renewables exceed 100 GW. Last year at the United Nations Climate Change Conference, the Indian government announced that by 2030 India's non-fossil fuel capacity would be 500 GW.
"Adani Group plans to supply the country with 45 GW (9 per cent of India's renewable energy) by 2030," the statement said.
"Adani Electricity Mumbai Limited, the distribution arm of ATL (committed to Net Zero by 2050) has legally covenanted targets to increase the renewable energy penetration from 3 per cent in FY21 to 60 per cent by FY27," it added.
APSEZ has committed to being carbon neutral by 2025 and to be a leader in the development of sustainable transport utility. "AEL, through its wholly owned subsidiary Adani New Industries Limited, has committed to build, over the next 9 years, a new green hydrogen vertical focused on decarbonization of industrial energy and mobility," it said.
The investment comes at a time when Adani Group has been under a cloud after US-based short seller Hindenburg Research accused the conglomerate of stock manipulation and accounting fraud.
Though the group has denied all allegations and responded to allegations with detailed replies, shares of group companies had plunged. They, however, have recovered some of the losses in the last two trading sessions.
Florida-headquartered GQG had offices in New York, London, Seattle and Sydney. It is listed on the Australian Securities Exchange and managed USD 92 billion in client assets as of January 31.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
MP HC sets up judicial commission to probe water contamination in Indore
Indore (PTI): The Indore bench of Madhya Pradesh High Court on Tuesday set up a commission of inquiry comprising a former HC judge to probe the issue of water contamination in city's Bhagirathpura, saying the matter requires probe by an independent, credible authority and "urgent judicial scrutiny".
It also directed the commission to submit an interim report after four weeks from the date of commencement of proceedings.
A division bench of Justices Vijay Kumar Shukla and Alok Awasthi constituted the commission while hearing several public interest litigations (PILs) filed simultaneously regarding the deaths of several people in Bhagirathpura due to the consumption of contaminated water.
The HC reserved the order after hearing all the parties during the day, and released it late at night.
The state government on Tuesday told the HC that the deaths of 16 people in Indore's Bhagirathpura area was possibly linked to a month-long outbreak of vomiting and diarrhoea caused by contaminated drinking water.
The government presented an audit report of 23 deaths from the current gastroenteritis epidemic in Bhagirathpura before the bench, suggesting that 16 of these fatalities may have been linked to the outbreak of vomiting and diarrhoea caused by contaminated drinking water.
The report, prepared by a committee of five experts from the city's Government Mahatma Gandhi Memorial Medical College, stated that the deaths of four people in Bhagirathpura were unrelated to the outbreak, while no conclusion could be reached regarding the cause of death of three other people in the area.
During the hearing, the high court sought to know from the state government the scientific basis behind its report.
The division bench also expressed surprise at the state government's use of the term "verbal autopsy" in relation to the report, sarcastically stating that it had heard the term for the first time.
The HC expressed concern over the Bhagirathpura case, stating that the situation was "alarming," and noted that cases of people falling ill due to contaminated drinking water have also been reported in Mhow, near Indore.
In its order, the HC said the serious issue concerning contamination of the drinking water supply in Bhagirathpura area allegedly resulted in widespread health hazards to residents, including children and elderly persons.
According to the petitioners and media reports, death toll is about 30 till today, but the report depicts only 16 without any basis or record, it said.
It is averred that sewage mixing, leakage in the pipeline, and failure of civic authorities to maintain potable water standards have led to the outbreak of water-borne diseases. Photographs, medical reports, and complaints submitted to the authorities prima facie indicate a matter requiring urgent judicial scrutiny, the HC said.
"Considering the gravity of the allegation and affecting the right to life under Article 21 of the Constitution of India and the need for an independent fact-finding exercise, the Court is of the opinion that the matter requires investigation by an independent, credible authority," it said.
"Accordingly, we appoint Justice Sushil Kumar Gupta, former judge of the Madhya Pradesh High Court, a one-man commission of inquiry into the issues relating to water contamination in Bhagirathpura, Indore, and its impact on other areas of the city," the HC added.
As per the order, the commission shall inquire into and submit a report on the cause of contamination -- whether the drinking water supplied to Bhagirathpura was contaminated; and the source and nature of contamination (sewage ingress, industrial discharge, pipeline damage etc).
The panel will also probe the number of actual deaths of affected residents on account of contaminated water; find out the nature of disease reported and adequacy of medical response and preventive measures; suggest immediate steps required to ensure safe drinking water as well as long-term infrastructural and monitoring reforms.
It will also identify and fix responsibility upon the officers and officials found prima facie responsible for the Bhagirathpura water contamination incident, and suggest guidelines for compensation to affected residents, particularly vulnerable sections.
The commission shall have powers of a civil court for the purpose of summoning officials and witnesses; calling up records from the government department, hospitals, laboratories and civic bodies; ordering water quality testing through accredited laboratories; conducting spot inspections.
All state authorities involving district administration, Indore Municipal Corporation, public health engineering department and Madhya Pradesh Pollution Control Board shall extend full co-operation and provide records as sought by the commission, it said.
The state government shall provide office space, staff, and logistical support to the commission, it said.
During the hearing in the day, the state government also presented a status report to the court in this matter.
According to reports, a total of 454 patients were admitted to local hospitals during the vomiting and diarrhea outbreak, of whom 441 have been discharged after treatment, and 11 are currently hospitalised.
According to officials, due to a leak in the municipal drinking water pipeline in Bhagirathpura, sewage from a toilet was also mixed in the water.
