GQG Partners’ Rajeev Jain’s belief in Adani shares seems to be based on three fundamental factors – comfortable valuations, healthy growth potential and confidence in the company’s management. The veteran investor has increased his stake in Adani shares as he believes that the fundamentals of the group’s business are now in a better position while valuations are also at a very comfortable level. Furthermore, as the group primarily deals with the infra sector, it has strong growth potential in a country like India.
Jain’s GQG Partners LLC has raised its stake in billionaire Gautam Adani’s group by nearly 10 per cent. As suggested by media reports, the US-based investment firm will also participate in future fundraising of the group, which it calls the “best infrastructure asset available in India”.
Read more: GQG’s Rajeev Jain raises Adani stake to 10% for $3.5 billion stake
In March, GQG acquired approx 15,446 crore investment in four companies of Adani Group. The value of this investment now stands at approx. 25,515 crores, staggering 10,069 crore driven by a sharp rally in Adani Group shares. This means that Jain’s investments in four Adani group companies in March have given returns of over 65 per cent in less than three months.
Jain is bullish on Adani shares as he aims to become one of the largest investors in the Adani group within five years on a valuation basis. In an interview with Bloomberg, he said that he would definitely like to be a partner in any new offering from Adani Group.
Jain has faith not only in Adani Group but also in Gautam Adnai.
In March, after acquiring stake in four Adani group companies, Jain said: “Adani companies own and operate some of the largest and most important infrastructure assets across India and around the world. Gautam Adani is widely regarded as one of the best entrepreneurs of his generation. We believe the long-term growth potential for these companies is enormous, and we are pleased to invest in companies that will help advance India’s economy and energy infrastructure, including their energy transformation over the long term. is included.”
Interestingly, this was also the time when most investors were intrigued by the Hindenburg saga and the company’s rich valuation. Jain saw an opportunity in Adani shares that perhaps many others did not.
Adani Group’s high debt level has been a major concern for investors but Jain looks at it from a different perspective. Most of the Adani group companies have regulated assets and debt levels are on the lower side from a utility perspective. As the group has now indicated lower capital expenditure, investing in group companies may provide better risk rewards.
Adani Stocks The group has seen strong growth after getting a clean chit from the Supreme Court (SC) panel. The SC-appointed panel probing the allegations leveled by Hindenburg Research found no evidence of ‘regulatory failure’ by markets regulator Securities and Exchange Board of India (SEBI).
(With inputs from media reports)
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