Veteran investor Rajiv Jain’s GQG Partners LLC has raised its stake in billionaire Gautam Adani’s conglomerate by about 10%, said a report on Tuesday.
GQG's Rajiv Jain raised his stake in billionaire Gautam Adani's conglomerate to about $3.5 billion, a bet on what he's called "the best infrastructure assets available in India", reported Bloomberg on Tuesday.
“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, told Bloomberg in an interview. “We would certainly want to be partners in any of Adani Group’s new offerings.”
Jain told Bloomberg that the value of GQG’s Adani holdings was close to $3.5 billion. He, however, didn’t specify which Adani companies he bought into or what part of the investment value came from direct purchases.
"Within five years, we would like to be one of the largest investors in Adani Group depending on the valuation, after the family," Jain told Bloomberg.
In March, US-based GQG acquired almost $2 billion worth of shares in four Adani firms from a family trust. The investment had come at a time when Adani stocks were reeling from the ramifications of a scathing report by US short seller Hindenburg Research.
Adani Group's listed companies lost nearly $147 billion in market value earlier this year after Hindenburg raised several questions on governance at the conglomerate. The group has denied any wrongdoing.
Adani shares have been on a tear lately after an SC panel report said it was not "possible to conclude regulatory failure on allegation of price manipulation".
Stocks of Adani's flagship firm Adani Enterprises Ltd advanced as much as 19% on Tuesday, taking its three-day jump to 46%, while Adani Ports & Special Economic Zone Ltd gained 8% to recoup all its losses triggered by Hindenburg.
GQG Partners bought 2.84 crore shares of Adani Transmission Ltdat Rs 668.4 apiece aggregating to Rs 1,898 crore, 3.87 crore shares of Adani Enterprises Ltd at Rs 1,410.86 apiece aggregating to Rs 5,460 crore, 8.86 crore shares of Adani Ports at Rs 596.2 apiece aggregating to Rs 5,282 crore, 5.56 crore shares of Adani Green Energy at Rs 504.60 apiece aggregating to Rs 2,806 crore.
With the recent run-up in Adani stocks, Jain pocketed over $1 billion from his investment within three months, which translates into 50% gains.