JSW Energy sinks 4% on stake sale by promoter; GQG Partners buys shares

Snapping five sessions gaining streak, shares of JSW Energy declined nearly 4% in intraday trade on Thursday after its promoter JSW Investments partially sold stake in the company through open market transactions. As per the bulk trade data available on the BSE, JSW Investments sold 2.1 crore equity shares, or 1.28% stake in JSW Energy, at a price of ₹341.7 per share, a discount of 7.17% to Wednesday’s closing price.

As per shareholding pattern available on the BSE, promoter entities own 74.66% stake in JSW Energy, a part of Sajjan Jindal-led JSW Group, at the end of June 2023 quarter. Of this, 20.22% shares are owned by JSW Investments.

Early today, JSW Energy opened a tad higher at ₹368.90 against the previous closing price of ₹368.10 on the BSE, extending the rally for the sixth straight session. In the early trade, the largecap stock rose as much as 0.8% to hit a 52-week high of ₹370.90, but soon pared gains and tumbled 3.8% to hit an intraday low of ₹354.05. The counter has fallen as much as 4.5% from the day’s high levels. In the last five sessions, the stock has zoomed 26.5%.

At the current price level, JSW Energy shares trade 73% higher than its 52-week low of ₹204.80 touched on February 27, 2023. In the last one year, the stock has risen 7%, while it added 21% in the calendar year 2023. The stock seemed to have gained momentum in the last six months, rising more than 57% during this period, while it climbed over 21% in a month and 9% in a week.

According to the exchange data, the Rajiv Jain-backed GQG Partners Emerging Markets Equity Fund purchased 1.03 crore shares, 0.62%, in the power generation and transmission company via open market transactions. The shares were purchased at an average price of ₹341.7 per share, amounting to ₹351 crore.

Earlier on Monday, GQG Partners had picked up nearly 1.2 crore shares of JSW Energy at ₹345 apiece, aggregating to ₹411 crore.

Besides, Rajiv Jain-led investment firm acquired 31.2 crore equity shares of Adani Power for more than ₹9,000 crore ($1.1 billion) in a series of block deals on Wednesday. This is touted to be largest ever single equity deal in Indian stock market.

Earlier in June, GQG Partners raised its shareholding in two Adani group companies by acquiring 1.6% in the group’s flagship Adani Enterprises and 2.2% in the renewable energy firm Adani Green Energy.  

In March this year, Jain, the co-founder and chairman of GQG Partners, acquired minority stakes in four of the listed Adani Group companies for ₹15,446 crore. Listed on the Australian Stock Exchange, GQG Partners acquired stakes in Adani Enterprises Limited (AEL), Adani Ports and Special Economic Zone Limited (APSEZ), Adani Green Energy Limited (AGEL), and Adani Transmission (ATL).

The investment by GQG was the first major capital infusion in Adani Group since Hindenburg Research’s critical report on the conglomerate came out on January 24, 2023. The report triggered a sell-off in group shares resulting in a huge market loss for most of the listed entities.

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