New Delhi: NRI investor Rajiv Jain’s investment firm, GQG Partners, has shown confidence in the Adani Group by increasing its stake by approximately 10%. Despite the stock rout led by Hindenburg, GQG Partners made a contra call and invested over Rs 15,000 crore in Adani stocks at their peak. The value of GQG’s Adani holdings is estimated to be close to $3.5 billion.
Jain expressed his long-term vision for the investment: “Within five years, we would like to be one of the largest investors in Adani Group, depending on the valuation, after the family.” He further added that GQG would be interested in partnering with Adani Group in any of its new offerings, although he did not specify which companies he had acquired additional stake in.
Recent reports suggest that GQG has been actively buying Adani stocks in the past few days and is also eager to participate in the fundraising plan of the Ahmedabad-based conglomerate. In a move to raise funds, Adani Enterprises and Adani Transmission had previously announced their intentions to raise a total of Rs 21,000 crore through qualified institutional placement (QIP). Adani Enterprises aims to raise Rs 12,500 crore, while Adani Transmission plans to raise Rs 8,500 crore.
Earlier this year, through secondary block trade transactions, GQG acquired stakes from the Adani Group promoter entity SB Adani Family Trust in companies such as Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission, and Adani Enterprises. The deal in Adani Enterprises alone was valued at Rs 5,460 crore, with shares bought at Rs 1,410.86 apiece. Similarly, APSEZ stocks were bought at Rs 596.20 apiece, amounting to a total of Rs 5,282 crore.
In a previous interview, Jain had expressed his optimistic outlook on Adani stocks, predicting that they could provide significant returns over the next five years. This sentiment seems to be reflected in the recent market performance, with Adani Enterprises witnessing a surge of over 15% in its stock price, while Adani Wilmar reached the upper circuit limit of 10%. Other companies within the Adani Group, including Adani Power, Adani Transmission, Adani Green, Adani Total Gas, and NDTV, also hit the upper limits of 5% gains.
Adani Ports, in particular, saw its stock price inch back towards pre-Hindenburg report levels, experiencing a rally of up to 8% and reaching a high of Rs 785.95 during the day. This positive momentum comes after the Supreme Court-appointed panel released a report stating that there was no evidence of price manipulation by Gautam Adani’s companies. The 173-page report, led by former judge Justice AM Sapre, found no evident pattern of manipulation and could not attribute the steep rise in stock prices to any single entity or group of connected entities.
However, the panel also stated that it was unable to conclude whether there had been regulatory failures regarding price manipulations. The Supreme Court extended the deadline for the Securities and Exchange Board of India (SEBI) to complete its probe into the Hindenburg issue until August 14.
Overall, GQG Partners’ increased stake in the Adani Group, coupled with the positive market response and the recent report from the SC-appointed panel, demonstrates growing confidence in the conglomerate’s future prospects.
