Mumbai : Adani Enterprises saw delivery of nearly 30 lakh shares each of the two days through Tuesday, the highest since February 9, after GQG Partners raised its stake in the group flagship to 10%, Bloomberg reported. Market watchers said this would push the stock, which was not cheap, down and make it costlier. One of them said that it would be interesting to see whether LIC makes profit in this stock or not.
Markets seem to have been anticipating the move, with the stock rallying nearly 19% on Monday itself. Rajiv Jain sets up GQG Partners, buys stake value 5460 crore in AEL at the beginning of March. Tuesday’s report put it at $3.5 billion or 28,980 crores based on the rate of 82.8/USD.
Rajesh Baheti, director, Crossseas Capital, said, “The float of the stock will come down as another large investor takes stake in the company.” The stock is not cheap at current prices.
Promoters held 69.23% stake in AEL at the end of March quarter. In public holding, FPI was the largest domestic institutional holder at 17.75% and LIC at 4.26%.
A market source said that despite sitting on “huge leverage”, Jain set up GQG’s further investment in AEL, indicating he was in for the “long haul” in the company’s potential. This, he said, will boost the stock’s prospects, noting that the regulators have not found any “objectionable” evidence in terms of violation of the minimum public shareholding norm that sets the 25% floor.
Jain’s GQG Partners buys AEL shares 1410. At the current price of 2633.70 each, the unrealized profit of their firm is 87%.
The news sparked massive short-covering in active futures contracts, with a massive 28% drop in outstanding positions as the share price surged 13.22%. 2633.70. Total turnover of stock on 7494 crore was the highest in a year.
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