Adani Group’s $79-billion rally makes a winner of GQG’s Rajiv Jain
Gautam Adani has proved to be a windfall for emerging-market investor Rajiv Jain, just nine months after his firm GQG Partners Inc. bought into the Indian conglomerate.
The combined market value of the 10 companies controlled by the Ahmedabad-headquartered Adani Group has increased by more than $79 billion since the purchase by GQG on March 2.
Jain acquired Adani shares weeks after a brutal shortseller report had battered the ports-to-power conglomerate and wiped out more $150 billion in market value.
Flagship Adani Enterprises Ltd. and two other group firms have more than doubled from the price GQG paid for them.
The value of its investments in the Adani Group, initially about $1.9 billion with some more purchased along the way, has risen to more than $7 billion as of last week, according to the firm.
“We remain excited about the fundamentals of each of these businesses,” Sudarshan Murthy, a portfolio manager at GQG, said in an interview this week, adding that the investment firm had been net buyers of Adani stocks this quarter.
Murthy, who co-manages some of the GQG funds along with Jain, declined to comment on the profits made from investments in the Adani conglomerate.
Jain’s investment — it came near the trough of the Adani stock meltdown — has been boosted by a rally in this week after the conglomerate’s green energy unit secured a $1.4 billion loan and a Bloomberg News report said US government found shortseller Hindenburg Research’s allegations irrelevant while advancing a $553 loan for Adani Ports and Special Economic Zone Ltd.’s Sri Lanka project.
That news is “a big deal,” Murthy said, commenting on the US government’s stance.
Adani Group’s stocks also saw a relief rally in its shares late last month
