In a surprising turn of events, billionaire Gautam Adani and entities owned by him have purchased shares worth ₹32,480.6 crore ($3.94 billion) in five of the group’s 10 listed firms in 2023. This stands in contrast to the ₹23,551 crore ($2.85 billion) worth of shares they sold, as revealed by stock exchange data. The intricate details of these transactions provide insights into the changing ownership dynamics within the Adani Group.
The companies involved in these transactions include Adani Enterprises Ltd, Adani Ports and Special Economic Zone Ltd, Adani Green Energy, and Adani Energy Solutions Ltd. The data refutes the perception that the conglomerate was compelled to sell promoter equity in March last year due to a critical report by US short-seller Hindenburg Research.
Among the key findings, it’s observed that promoters ended 2023 with less ownership in four companies, while in Adani Ports and SEZ, their stake increased. The purchases were made in the second half of the year, valuing the shares higher than the time they were sold in the first half of the year.
While the source of funds for the nine promoter entities making these purchases remains uncertain, the use of Mauritius-headquartered entities for buying back shares adds a layer of complexity to the financial maneuvers of the Adani Group.
Last year witnessed a roller-coaster for the conglomerate, responding to allegations of stock manipulation and accounting fraud. Despite the storm, Adani Group managed to pay back $2.65 billion raised by pledging shares as collateral, improving its financial health and boosting investor sentiment.
The article delves into the changing fortunes of the Adani Group, the impact of the Hindenburg Research report, the subsequent financial moves, and the positive outlook presented by analysts.
