Rajiv Jain-Led GQG Partners' Adani Bet Has Already Gained Rs 9,000 Crore

GQG Partners' bet on Adani Group stocks has already returned nearly 60% gains. And founder Rajiv Jain plans to add more.

Jain's investment firm bought stakes worth Rs 15,444 crore ($1.87 billion) on March 2, citing the quality of assets. GQG Partners acquired 3.39% in Adani Enterprises Ltd., 4.1% in Adani Ports and Special Economic Zone Ltd., 2.55% in Adani Transmission Ltd., and 3.51% in Adani Green Energy Ltd. via block trades on March 2.

The investment helped shore up investor confidence after the Hindenburg Research's allegations caused the Adani stocks to tumble.

The Adani Group also repaid debt worth $3 billion to allay investor fears, aiding recovery. And the Supreme Court panel's report last week triggered a fresh surge, sending the group's market capitalisation above Rs 10 lakh crore.

The rebound has raised the value of GQG Partners' holding in the four Adani companies by more than Rs 9,000 crore to Rs 24,659 crore, a gain of over 59% in less than three months.

The investment firm has an aggregate stake worth (on cost basis) of $2.3-2.4 billion invested in the billionaire Gautam Adani-owned conglomerate, Jain told BQ Prime's Niraj Shah in an interview.

"We were getting fantastic assets at very attractive valuation then."

The investments were made before the report by the Supreme Court panel that was made public on May 19, Jain said.

Jain told Bloomberg earlier that he expects the investment to double. On Tuesday, he told Bloomberg in another interview that the firm has since raised its stake in Adani companies by 10%. And it was valued at about $3.5 billion now. He plans to participate in the group's fundraising plans.

Disclaimer: AMG Media Networks Ltd., a subsidiary of Adani Enterprises Ltd., holds 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.