Adani Power Shares Rebound After 8.1% Stake Sale Ends Two-Day Dip

Adani Power Shares Rebound After 8.1% Stake Sale Ends Two-Day Dip

Adani Power shares have made a remarkable turnaround following two days of decline, driven by the recent sale of an 8.1% stake to GQG Partners, headed by Rajiv Jain. This strategic move introduced Goldman Sachs GQG Partners International Opportunities Fund to the landscape of Adani Power Ltd.

According to official data from Indian stock market exchanges, the US-based investor secured 10,30,30,127 Adani Power shares at a rate of ₹279.15 per share. This substantial investment totals ₹28,76,08,59,952.05 or ₹2,876 crore injected into Adani Power.

This development triggered a notable surge in Adani Power share interest, with bullish sentiment apparent on Dalal Street. The stock opened on a positive note and went on to mark an intraday peak of ₹288.50 per share on the NSE, reflecting a noteworthy 3% intraday increase during early Thursday trading.

As disclosed by Adani Power in bulk deal details to Indian exchanges, this transaction took place on August 16, 2023. The substantial ₹2,876 crore transaction was executed as a single seller single buyer deal by Goldman Sachs GQG Partners International Opportunities Fund.

Complementing this deal, additional bulk transactions concerning Adani Power shares unfolded on the same day. Data accessible on the BSE website reveals that another US-based investor, GQG Partners Emerging Markets Equity Fund, procured 4,90,30,009 Adani Power shares at ₹279.15 per share. This investment translates to an estimated ₹13,68,67,27,012.35 or roughly ₹1,368 crore infused into the Adani group company.

Following the 8.1% stake sale to GQG Partners, Adani Power shares surged by over 3% in early trading, marking the end of a two-day declining trend. The share price reached Rs 288.45, contributing to a market capitalization of Rs 1.09 lakh crore. During trading on BSE, around 11.17 lakh shares were exchanged, resulting in a turnover of Rs 31.92 crore.

Though Adani Power shares had previously scaled a 52-week high of Rs 432.80 on August 22, 2022, current technical indicators present an intriguing scenario. The relative strength index (RSI) stands at 60.1, indicating a neutral position between overbought and oversold zones. With a beta of 1.1, the stock demonstrates significant volatility over a year. Notably, Adani Power shares continue to remain above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

Performance-wise, Adani Power shares have experienced a 25.58% decline over the past year and a 5% dip in 2023. However, an impressive growth of 664% has been recorded over the span of three years.

Bulk deal data reveals that the US-based boutique investment firm acquired 31.2 crore equity shares of Adani Power, amounting to more than Rs 9,000 crore ($1.1 billion).

During this development, the promoter Adani family retained a 74.97% ownership, equivalent to 289.16 crore equity shares in the utility company. The divestment of an 8.1% stake, comprising 31.2 crore equity shares, was executed at an average price of Rs 279.17 per share.

In recent times, Jain’s investment firm has demonstrated growing interest in Adani Group companies. Despite negative reports, the firm has continued to invest in Gautam Adani’s group. Adani Power now joins the ranks of entities within the conglomerate that have received investment from GQG since May.

On the financial front, Adani Power reported an impressive 83.25% increase in consolidated net profit for the quarter ending June 2023, amounting to Rs 8,759.42 crore compared to Rs 4,779.86 crore in the corresponding quarter of the previous fiscal year. This remarkable growth was driven primarily by significant other income.

However, the company witnessed a reduction in revenue from operations, which stood at Rs 11,005.54 crore, marking a decline of 19.80% compared to the corresponding quarter of the preceding fiscal year.

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