Rajiv Jain's GQG Partners Raise Stake In Adani Group By 10% To $3.5 Billion: Report

Rajiv Jain said that he is planning to raise more stakes in the Gautam Adani-led conglomerate and become one of the largest investors after the Adani family in five years. 

Veteran investor Rajiv Jain’s GQG Partners LLC has raised its stake in the Adani Group of companies by about 10 per cent to $3.5 billion, reported Bloomberg. Rajiv Jain told the news agency that he is planning to raise more stakes in the Gautam Adani-led conglomerate and become one of the largest investors after the Adani family in five years. 

Earlier this year in March, GQG acquired almost $2 billion worth of shares in four of Adani’s firms from a family trust. That initial investment in the beleaguered conglomerate supported the Adani firms after they were accused of “brazen” stock-price manipulation and corporate fraud by New York short-seller Hindenburg Research, the report noted. It caused Adani Group to lose more than $150 billion in market value. The company repeatedly denied all allegations made in the Hindenburg report. 

Rajiv Jain on Tuesday told Bloomberg, "Within five years, we would like to be one of the largest investors in Adani Group depending on the valuation, after the family.”

He said that GQG Partners LLC will take part in the conglomerate’s future fundraising of “the best infrastructure assets available in India.”

“We would certainly want to be partners in any of Adani Group’s new offerings.”

Jain also said the value of GQG’s Adani holdings is close to $3.5 billion. Although he didn’t specify which companies he bought into or what part of the investment value came from direct purchases and rallies in Adani shares.

Also Report: Adani Ports Recoups All Stock Losses Since Hindenburg Row, Adani Enterprises Jumps 18 Per Cent

Jain's comment comes on a day when Adani Group stocks surged as much as 19 per cent. This after an interim expert panel report submitted to Supreme Court last week, saying it has found no conclusive evidence of stock-price manipulation by the conglomerate. 

On Tuesday, the flagship firm of Adani Group, Adani Enterprises Ltd. rose 19 per cent on Tuesday, taking its three-day jump to 46 per cent, while Adani Ports & Special Economic Zone Ltd. gained 8 per cent.

The Indian-origin investor Jain, who is based out of Fort Lauderdale, Florida, told Bloomberg that he is unconcerned by the short seller’s allegations and said such allegations are common in India's business environment.

Over a 30-year investment career, “I’ve yet to come across a perfect company,” Jain said earlier.

Jain has further defended his contrarian investment strategy by highlighting the significance of Adani Group's diverse businesses, such as coal mining and airport assets, which align with India's development objectives.