Ambuja Cement block deal: GQG Partners' investment in Adani Group companies stands at Rs 80,000 crore, highest share in Adani Power 

US-based GQG Partners Emerging Markets Equity Fund emerged as the largest investor in the block deal window of Adani Group-controlled Ambuja Cement Ltd. On August 23, GQG Partners Emerging Markets Equity Fund purchased 1.71 crore shares, or a 0.69 percent stake, in Ambuja Cement for Rs 1,679 crore or at Rs 625.5 apiece via a bulk deal.

Holderind Investments Ltd., an esteemed company under the ownership of esteemed billionaire Gautam Adani and his esteemed family, recently divested a 2.8% share in Ambuja Cements for a substantial amount of Rs 4,251 crore.

GQG Partners, with an impressive Rs 80,000 crore investment, is the largest institutional investor in Adani Group entities. The fund, led by Rajiv Jain, has strategically enhanced its investment after initially entering the market with an acquisition in March 2023.

Jain made significant investments in various Adani Group companies following Hindenburg Research's report was published in January 2023. Among the 10 companies listed under the Adani Group, GQG Partners holds stakes in prominent entities such as Adani Enterprises, Adani Green Energy, Adani Energy Solutions, Adani Ports & SEZ, Adani Power, and Ambuja Cements.

In February 2023 after the Hindenburg report was out, the total market capitalisation of Adani group companies decreased to less than Rs 7 lakh crore. By June 2024, this figure reached a peak of Rs 19.4 lakh crore. However, there has been a 12% decline in valuation since then, with the current market capitalisation standing at Rs 17.1 lakh crore as of the latest Friday's close.

GQG's investment in the six Adani Group stocks, dani Enterprises, Adani Green Energy, Adani Energy Solutions, Adani Ports & SEZ, Adani Power, and Ambuja Cements, amounted to approximately Rs 80,000 crore at the end of August 23 (Friday). Asignificant proportion of this investment is concentrated in two key group firms, namely Adani Green Energy and Adani Power, which collectively constitute more than half of GQG's total investment.

As per the disclosures in stock exchange filings, it has been revealed that Rajiv Jain's company holds a stake exceeding 7% in each of these two companies. Furthermore, when considering the overall investment portfolio, this US-based investor commands a stake of around 5.2% in the broader group.

Among the group companies, GQG has the highest holding in Adani Power, with an ownership of 7.73%. In comparison, GQG holds 7% in Adani Green Energy and 6.6% in Adani Energy Solutions. Year to date in 2024, the group stocks have surged by 20.2%, outperforming the benchmark Nifty50 which has gained 14.2%.

Friday block deal

Investors, such as GQG Partners, National Pension System Trust, and SBI Life Insurance, acquired shares in Ambuja Cements from the Adani family on Friday. Through this sale, the Adani family successfully raised Rs 4,251 crore, aiming to boost investment activities within their conglomerate. Sources within the banking sector revealed that this move is part of the ongoing strategy to manage and diversify the Adani family's extensive portfolio, currently valued at $125 billion.

As per stock exchange statistics, GQG Partners was the top buyer as it bought shares worth Rs 1,679 crore in Ambuja Cements. National Pension System Trust acquired shares worth Rs Rs 525 crore while SBI Life Insurance bought shares worth Rs 500 crore.

Other major investors included Mirae Asset Mutual Fund, which acquired a 0.16% stake for Rs 251 crore, and Morgan Stanley Asia Singapore, which picked up a 0.158% stake for Rs 243 crore. In total, the block deals involved 24 investors acquiring stakes in Ambuja Cements, including prominent names such as Axis Mutual Fund, ICICI Prudential Mutual Fund, and Invesco Mutual Fund.

Shares of Ambuja Cements began trading on Friday at Rs 654 per share, indicating a notable 3.33% rise from the closing price of the previous day. By the end of the trading day, the stock closed at Rs 633.55 apiece.

Moreover, subsequent to the block deals executed on Friday, there was a reduction in the promoter holding of Ambuja Cements from 70.33% to 67.57%. This change in ownership structure could potentially influence the strategic direction and decision-making within the company.