GQG's Rajiv Jain to explain Rs 15,446-cr investment in Adani Group to Australian investors this week

US-based boutique investment firm GQG Partners chairman Rajiv Jain will be explaining his rationale for investing over Rs 15,000 crore in four Adani Group firms to clients and investors in Australian cities of Sydney and Melbourne this week. 

GQG Partners, listed in Australia, bought shares worth Rs 15,446 crore in four Adani Group companies, marking the first major investment in Adani since a short-seller's critical report in January sparked a $135-billion stock rout.

The report by US-based Hindenburg Research alleged stock manipulation and improper use of tax havens by Adani, and flagged concerns over its debt levels. Adani has rejected the allegations and denied any wrongdoing.

The stake purchase has raised queries from an Australian pension fund client of GQG, at a time when major investors, including Norway's sovereign wealth fund, have completely exited Adani shares.

Last week, SB Adani Family Trust has cumulatively sold about 21 crore in four of the Adani Group companies through the open market. GQG Partners bought 2.84 crore shares of Adani Transmission on Thursday at 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.

Jain is meeting some of GQG's clients in person while doing conference calls with others, two sources separately told Reuters, declining to be named as they were not allowed to discuss private information.

"Rajiv Jain is visiting Australia this week to meet with investors. The trip was planned well in advance of the Adani purchase," the statement to Reuters said.

"It's also an opportunity to respond to any questions they have about the business including the Adani investment," GQG said, adding it's Jain's first visit to Australia since the company listed on the ASX in 2021.

Florida-based GQG manages equity funds for institutional investors such as mutual funds, private funds, public agencies and sovereign funds in and outside the US.

Morningstar said in a report last month that it expected GQG's funds under management to grow at a mid-teens CAGR (compound annual growth rate) and exceed $180 billion by 2027, compared to $92 billion as of January 2023.

More than two-thirds of funds under management of the Australia-listed investment firm comes from the Americas, as per its filings. GQG attracted net flows of $3 billion in January and February, more than two-thirds the haul for all of 2022.

In an interview with an Australian publication, Jain, born and raised in India, described the airport, port and energy assets owned by the Adani Group companies as 'fantastic', 'irreplaceable' and available at a good price.

“About 25% of India’s air traffic passes through their airports and 25 to 40% of India’s cargo volume goes through their ports,” he said.

“The biggest competitors are actually the Indian government, not exactly the fastest running horse in the race.”

With inputs from Reuters