Rajiv Jain-led GQG raises stake in Adani Group by 10 per cent in $3.5 billion bet – EQ Mag
GQG Partners LLC, led by veteran investor Rajiv Jain, has increased its stake in billionaire Gautam Adani’s conglomerate by approximately 10 per cent and expressed interest in participating in the conglomerate’s future fundraising campaigns. Jain considers Adani Group to possess the best infrastructure assets available in India and aims to become one of the largest investors in the company within five years, after the Adani family.
In an interview, Jain stated, “We would certainly want to be partners in any of Adani Group’s new offerings.” The value of GQG’s Adani holdings is estimated to be around $3.5 billion.
Details about GQG’s initial investments in Adani
In March, GQG made an initial investment of nearly $2 billion by purchasing shares in four of Adani’s companies from a family trust. This investment provided a boost to the tycoon’s companies, which had faced allegations of stock-price manipulation and corporate fraud by New York short-seller Hindenburg Research.
The conglomerate’s market value had plummeted by over $150 billion at one point. However, Jain remains unfazed by the short seller’s allegations, which Adani has consistently denied, considering them to be a common occurrence in India’s business landscape.
Jain justifies his contrarian investment by emphasising the value of Adani Group’s businesses, including coal mining and airport assets, which align with India’s development goals. Prime Minister Narendra Modi has been urging domestic businesses to bolster critical infrastructure and attract manufacturing investments, particularly as a means to divert production from China.
Adani stocks experiencing a massive surge
Adani Enterprises Ltd, the flagship firm, witnessed a three-day surge of 46%, with a 19% increase on Tuesday alone. Adani Ports & Special Economic Zone Ltd also recovered all its losses triggered by Hindenburg, gaining 8%.
GQG Partners acquired significant shares in Adani Group companies, including Adani Transmission Ltd, Adani Enterprises Ltd, Adani Ports, and Adani Green Energy, amounting to substantial investments.
The rally in Adani Group stocks follows the report by the Supreme Court-appointed panel, which stated that there was no evidence of a regulatory failure by the group and no discernible pattern of manipulation contributing to the sharp rise in stock prices across Gautam Adani’s companies. The 173-page report concluded that no single entity or connected group of entities could be held responsible for the observed stock price increases.
As GQG Partners doubles down on its investment in Adani Group and expresses confidence in its future prospects, the rally in the conglomerate’s stocks is expected to continue in the coming days.
Source: PTI
