GQG’s Rajiv Jain raises Adani stake by 10% for $3.5 billion bet

Veteran investor Rajiv Jain’s GQG Partners LLC has increased its stake in billionaire Gautam Adani’s conglomerate by about 10%. The US-based investment firm will also take part in the conglomerate’s future fund raising, doubling down on what he calls “the best infrastructure assets available in India.”

“Within five years, we would like to be one of the largest investors in Adani Group depending on the valuation, after the family,” Jain, GQG’s chief investment officer, said in an interview with Bloomberg. “We would certainly want to be partners in any of Adani Group’s new offerings.”

The value of GQG Partners’ stake in Adani group companies was close to $3.5 billion, Jain added.

In March, GQG acquired almost ₹15,446 crore investment into four Adani Group companies. The value of this investment now stands at around ₹25,515 crore, up by a staggering ₹10,069 crore, driven by a sharp rally in Adani group stocks.

Also Read: Adani stocks' surge helps GQG Partners make ₹10,000 crore from investment in less than 3 months

GQG Partners' initial investment in the Gautam Adani led conglomerate came at a time when they were accused of “brazen” stock-price manipulation and corporate fraud by US-based short-seller Hindenburg Research, causing Adani Group at one point to shed more than $150 billion in market value.  

Jain said he was not concerned by the short seller’s allegations, which Adani has repeatedly denied and that Jain characterized as par for the course in India’s business context.

Jain has also justified his contrarian investment by pointing to the value of Adani Group’s businesses, including its coal mining and airport assets, which are tethered to India’s development goals.

Also Read: Adani stocks continue to dazzle as most of them hit upper circuits on SC panel relief

The shares of Adani group companies are witnessing a decent rally after the SC-appointed panel looking into allegations made by Hindenburg Research found no evidence of a ‘regulatory failure’ by the group.

The 173-page report said the committee found "no evident pattern of manipulation" in the sharp stock price rise in billionaire Gautam Adani's companies that can be attributed to “any single entity or group of connected entities.”

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