Adani Enterprises shares extend rally, 4 group stocks hit upper circuit

Shares of listed Adani Group companies surged on the BSE in Monday's opening deals, extending gains after the group sold minority stakes in four of its listed companies to US-based GQG Partners for ₹15,446 crore. Flagship company Adani Enterprises shares rallied more than 10% whereas Adani Power, Adani Green, Adani Transmission and Adani Total Gas hit 5% upper circuit each. 

Shares of Adani Ports and Special Economic Zone (APSEZ) also rose more than 3% whereas Ambuja Cements and ACC Ltd were trading with gains. Meanwhile, benchmarks BSE Sensex and Nifty jumped nearly a per cent in early deals. Adani Group firms' stocks ended in the positive territory on Wednesday, Thursday and Friday.

US-based, Australia-listed GQG has, through block deals, bought shares in four Adani group companies, including the conglomerate's flagship firm Adani Enterprises. The shares were sold by an Adani family trust, using Jefferies as a broker.

"We believe that the long-term growth prospects for these companies are substantial," said Rajiv Jain, GQG's chairman and chief investment officer, adding the firm's investments take into account a five-year horizon. 

The investment by US boutique investment firm GQG Partners Inc has come amid Supreme Court asking market regulator SEBI to investigate the group for any lapses related to public shareholding norms or regulatory disclosures.

Adani Group stocks took a beating on the exchanges after US-based short seller Hindenburg Research last month made a litany of allegations, including fraudulent transactions and share price manipulation, against it. The group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements. The conglomerate had also called of its ₹20,000 crore follow-on public offer last month despite it being fully subscribed. 

Adani group management, including group chief financial officer Jugeshinder Singh, last month held roadshows in Singapore and Hong Kong to reassure investors that the company's finances are under control. These are to be extended to Dubai, London and the US from March 7 to 15.