SYDNEY/BENGALURU, (Reuters) – Adani shares surged on Friday after a $1.87 billion investment in the group by GQG Partners Inc eased concerns about the group’s ability to attract funding, while the conglomerate lined up more road shows to shore up investor confidence.
The stake purchase by the boutique investment firm marked the first major investment in billionaire Gautam Adani’s conglomerate since a short-seller’s critical report resulted in seven of the Indian group’s listed firms losing about $130 billion in market value.
In the Jan. 24 report, U.S.-based Hindenburg Research noted high debt and alleged improper use of offshore tax havens and stock manipulation, which Adani denied. A dive in Adani stocks then prompted the group to shelve a $2.5-billion share sale
GQG’s deal “may assuage concerns about the group’s ability to raise funding for the repayment of loans against its listed company shares,” analysts at Kotak Institutional Equities said.
