Rajiv Jain of GQG Partners sees no trouble for fundraising plans of Adani Group companies even after the ups and downs of the Hindenburg saga.
"There's some mandatory selling that happens when indices reduce weights. So, I don't see a problem in their [Adani Group companies'] ability to raise capital at all," said Jain, chairperson at GQG Partners LLC.
Earlier this month, the Adani Enterprises Ltd. board approved raising Rs 12,500 crore via a qualified institutional placement, subject to shareholder approval. Adani Green Energy Ltd. is also looking to raise funds, with a board meeting to consider the same expected in the near future.
Adani Enterprises in February had decided not to go ahead with its fully subscribed Rs 20,000-crore follow-on public offer to protect investors' interest. The move came after the company's stock price dropped below the FPO floor price in the wake of the damning Hindenburg report.
Jain emphasised that the rout in Adani Group stocks created good opportunity for his firm to invest in them.
"If others don't invest it doesn't bother me. In fact, I like the fact some index funds are selling because it allowed us to buy some stuff. I mean that's as close to dumb money as it gets. I don't understand, a short seller writes a report and why is MSCI reducing weights in indices. Some of this is totally nonsensical. But okay, if people weren't doing stuff like that, we wouldn't get opportunity to buy either," said Jain.
On March 2, Rajiv Jain's GQG Partners had bought stake worth Rs 15,446 crore (about $1.9 billion) in Adani Enterprises Ltd., Adani Ports and Special Economic Zone Ltd., Adani Transmission Ltd. and Adani Green Energy Ltd. Jain's firm increased that to $2.3-24 billion on a cost basis, he told BQ Prime.
Also Read: Adani Assets 'Irreplaceable', Available At Good Price, Says GQG Partners Chairman Rajiv Jain
Watch the full interview here:
Disclaimer: AMG Media Networks Ltd., a subsidiary of Adani Enterprises Ltd., holds 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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