Veteran investor Rajeev Jain’s GQG Partners LLC has raised its stake in billionaire Gautam Adani’s group by nearly 10% and will participate in the group’s future fund raising for what it calls the “best infrastructure asset available in India”.
“Within five years, we want to be one of the largest investors in the Adani group, on a valuation basis, after the family,” Jain, chief investment officer at GQG, said in an interview. “We would certainly like to be a partner in any.” About new offerings from Adani Group.”
Jain said GQG’s Adani holdings were valued at close to $3.5 billion. He did not say which companies he bought or how much of the value came from direct purchases and rapid investments in Adani shares.
In March, GQG acquired shares worth about $2 billion in four Adani firms from a family trust. Early investments in the beleaguered conglomerate bolstered the tycoon’s companies after New York short-seller Hindenburg Research was accused of “shameless” stock-price manipulation and corporate fraud, which at one point saw the Adani group reach $150 billion in market value. There was a loss of more than ,
The Indian-origin investor, who operates out of Fort Lauderdale in Florida, said he was unfazed by the short seller’s allegations, which Adani has repeatedly denied and Jain characterized as par for the course in India’s business context. In a 30-year investing career, “I have yet to find the perfect company,” Jain told Bloomberg News earlier this year.
Jain has also justified his contrarian investments by pointing to the value of Adani Group’s businesses, which include coal mining and airport assets, which are linked to India’s development goals. Prime Minister Narendra Modi – who is seen to share a close friendship with Adani – has been pushing domestic business houses to build critical infrastructure and attract manufacturing from places like China.
Market momentum appears to be in Jain’s favor for now as Adani Group shares soared after an interim expert panel report submitted to the Supreme Court of India last week found no conclusive evidence of stock-price manipulation by the group. Not found.
Flagship firm Adani Enterprises Ltd gained 19% on Tuesday, taking its three-day jump to 46%, while Adani Ports and Special Economic Zone Ltd gained 8% as Hindenburg pared all its losses. Did.
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