SBI Mutual and Citadel Step In as GQG Slashes Adani Power Stake in Major Portfolio Shift

Wall Street giants pounce on discounted energy assets while fund managers reposition.

The Great Rotation

GQG Partners unloads Adani Power holdings in a strategic trim—just as SBI Mutual Fund and Citadel Securities build positions. The move signals institutional confidence in India's energy infrastructure despite recent volatility.

Power Play Dynamics

Citadel's entry through block deals mirrors hedge fund appetite for emerging market utilities. SBI's accumulation reflects domestic institutional doubling-down on infrastructure bets. Both moves occur while global funds rebalance exposure to Indian equities.

Market Mechanics

The transaction executes amid tightening ESG scrutiny and renewable energy transitions. Adani's operational assets continue drawing institutional capital—proving once again that traditional energy still moves needles when renewables talk stalls.

Because nothing says 'sustainable investing' like doubling down on coal-fired power plants during a climate crisis.

Adani stocks rally as SEBI clears charges

The partial exit comes as India’s securities regulator last week dismissed some allegations made in early 2023 by now-defunct Hindenburg Research against the Adani Group and its billionaire founder, Gautam Adani. The combined market value of the conglomerate’s 10 companies has risen by nearly $19 billion over two sessions through Monday.

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Adani stocks rally after SEBI dismisses Hindenburg allegations

“With the overhang of Sebi’s probe into Hindenburg’s allegations nearly behind it, long-term investors are likely to return to Adani stocks,” said Deven Choksey, managing director at wealth management firm DRChoksey FinServ Pvt. “Adani Power, with its large capital-expenditure plans, is well placed to attract major funds, and sentiment toward the company is set to improve.”

Representatives for Adani Power, GQG Partners, SBI Mutual and Citadel Securities didn’t respond immediately to requests for comment.

Deal at discount to market price

GQG’s selling price marked a discount to Friday’s close of 709.4 rupees before adjusting for a one-to-five stock split. At about 1% stake, the deal is the largest chunk of the power unit sold by the firm, whose Emerging Markets Equity Fund held a 1.77% stake at the end of June, according to data available at the BSE Ltd.

Adani Power stock hits record highs

Adani Power’s stock surged by the 20% daily limit on Monday, making it the most valuable in the ports-to-power conglomerate. Shares of the power generator have rallied more than 60% this year amid multi-billion dollar contracts won from Indian state governments.  

Also read

SEBI clears Adani Group, top executives in Hindenburg case

GQG backed Adani in the months following Hindenburg’s bombshell report that erased more than $150 billion in market value at one point. While the group is yet to regain its pre-Hindenburg market value of $235 billion, Adani Power’s shares have skyrocketed more than fivefold, making Jain’s investment appear prescient. 

Regulatory overhang in US remains

The Securities and Exchange Board of India has cleared Gautam Adani of some allegations of impropriety raised by the US short seller, but Asia’s second-richest person continues to face a regulatory overhang from an indictment by the US Department of Justice last year in an alleged $250 million bribery scheme. 

His efforts to get fraud charges against him in the US resolved have stalled in recent months, Bloomberg News reported earlier this month, citing people familiar with the matter.

More stories like this are available on bloomberg.com

Published on September 22, 2025