GQG Partners May Expand Investment In Adani Group, Says Founder Rajiv Jain

This comes a week after Adani Group sold shares in four of the conglomerate's listed companies to the US equity investment boutique for Rs 15,446 crore

GQG Partners’ founder Rajiv Jain on Wednesday said that it is likely that the firm will expand its investment in Adani Group, reported Reuters. This comes a week after Adani Group sold shares in four of the conglomerate's listed companies to the US equity investment boutique for Rs 15,446 crore.

According to the report, Rajiv Jain told journalists in Sydney, "Chances are we'll probably buy more because we typically initiate a position and then depending on how things go and how the earnings come through we tend to get it to full size because we're not at full size at this point.”

The report said that GQG Partners' deal with Adani was the first major investment in the conglomerate since the short-sellers report in January sparked a stock rout.

In a statement, the Adani Group had said shares in Adani Ports and Special Econmomic Zone Ltd (APSEZ), Adani Green Energy Ltd (AGEL), Adani Transmission Ltd (ATL), and Adani Enterprises Ltd (AEL) were sold through secondary market block deals.

"The investment has made GQG a key investor in the development and growth of critical Indian infrastructure," Adani Group said

This week Rajiv Jain flew to Australia to meet its investors in the country and explain its investment in the Adani group. Last week, pension fund investor Cbus Super, with $46.82 billion under management, told news agency Reuters that they had queried GQG about the Adani purchase.

When asked how the clients have responded to the Adani deal, Rajiv Jain said, "The response actually has been, frankly, more positive than I would have anticipated because they feel that's how we differentiate ourselves.”

Adani Group stocks have taken a beating on the bourses after Hindenburg Research made a litany of allegations, including fraudulent transactions and share-price manipulation, against the business conglomerate. The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

The billionaire Gautam Adani-led group said on Tuesday it prepaid share-backed financing of Rs 7,374 Crore, as it looks to allay fears over-leverage and debt sparked by the report.