GQG Partners invested Rs 15,446 crore ($1.87 billion then) in Adani Enterprises (Rs 5,460 crore), Adani Ports & SEZ (Rs 5,282 crore), Adani Transmission (Rs 1,898 crore), and Adani Green Energy (Rs 2,806 crore) on March 2, according to the Adani Group.
Almost three months after its initial investment in the beleaguered Adani Group, US-based GQG Partners has invested a further $330 million-$530 million in these companies. GQG Partners, managed by Rajiv Jain, first invested Rs 15,446 crore ($1.87 billion) in four Adani group companies in March.
“Our overall shareholding in all companies is higher than it was on March 3,” said Rajiv Jain, Chairman, CIO, and portfolio manager at GQG Partners. “The total investment is close to $2.2-2.4 billion in approximately over a dozen separate accounts we own these (shares) in multiple accounts,” he continued.
Jain did not specify whether GQG made the recent purchase on the open market.
GQG Partners invested Rs 15,446 crore ($1.87 billion then) in Adani Enterprises (Rs 5,460 crore), Adani Ports & SEZ (Rs 5,282 crore), Adani Transmission (Rs 1,898 crore), and Adani Green Energy (Rs 2,806 crore) on March 2, according to the Adani Group.
According to Jain, the value of GQG’s investment has already risen close to $3.5 billion as a result of the continued recovery in Adani Group equities following the Hindenburg blow.
“Within five years, depending on valuation, we would like to be one of the largest investors in Adani Group, after the family,” Jain added.
As Adani group share prices have recovered in recent months, the value of GQG’s Adani holdings has increased by 58% to Rs 24,414.59 crore ($2.95 billion) in less than 100 days, owing primarily to the rebound in Adani Enterprises and Adani Green share prices.
Since the end of trading on March 2, the four Adani Group companies have gained between 20% and 75%.
Jain’s investment in the Adani Group occurred at a time when most investors were nervous in the aftermath of the Hindenburg Research report in late January. The US-based short seller accused the Adani Group of stock manipulation and fraud. Despite the fact that Adani Group has disputed all claims, it has paid a high price. The investigation into the case is still ongoing, and the Sebi report on the matter has yet to be released.
The Adani Group has been working hard to regain investor trust. Adani Enterprises and Adani Transmission’s boards of directors approved resolutions in May to fund up to Rs 12,500 crore and Rs 8,500 crore, respectively, through qualified institutional placements (QIPs). Adani Green is also rumoured to be contemplating a new QIP to raise $500 million to $700 million.
The move to obtain financing through the QIP route is just another step taken by the Gautam Adani-led business firm to send a strong signal to the markets that the Hindenburg issue and continuing developments at the Supreme Court will not derail its business plans. Surprisingly, the company has recently repaid its debts and released share commitments totaling $3 billion.
All of the listed group businesses that have disclosed their results for the fourth quarter of fiscal year 2023 have reported strong results, with the majority exceeding street estimates. Furthermore, if the Adani enterprises’ shareholding records are any indication, it appears that investors have showed trust in the group, with the amount of retail investors’ stake in all nine listed firms increasing between December 2022 and March 2023.
