GQG Acquires Adani Enterprises, Adani Ports, Adani Green, and Adani Transmission Shares Valued at Rs 26,000 Crores

In a remarkable show of confidence, GQG Partners, led by Rajiv Jain, has substantially increased its investments in the Adani group over the past five months. The combined holdings of GQG Partners in five Adani stocks, namely Adani Enterprises Ltd, Adani Ports, Adani Green Energy Ltd, Adani Transmission Ltd, and Ambuja Cements, now stand at an impressive Rs 25,746 crore, close to Rs 26,000 crore. This significant stake accounts for approximately 3.23 per cent of the total market capitalization of these five Adani entities, based on trading prices on a recent Wednesday.

Rajiv Jain, during an interview with Bloomberg in May, expressed the firm’s ambition to become one of the largest investors in the Adani Group, potentially rivalling the family’s holdings, within the next five years, subject to valuation considerations.

GQG Partners commenced its investment spree in early March, injecting a staggering Rs 15,446 crore into four Adani group stocks. Interestingly, this massive investment coincided with the Supreme Court’s request to the Securities and Exchange Board of India (SEBI) for an investigation into potential market norm violations by the conglomerate. The investigation was triggered by a damning report from Hindenburg Research, which alleged “brazen stock manipulation and accounting fraud for decades” at Adani group companies. However, the Adani group firmly denied these accusations, attributing them to misinformation and discredited allegations dating back to 2004-2015.

Undeterred by the controversy, GQG Partners exhibited its unwavering faith in the Adani group’s future prospects. Rajiv Jain highlighted the uniqueness of the Adani group’s strong investment phase, particularly in ports, where substantial earnings growth is anticipated after a certain period. The infrastructure assets, regulated by the government, offer steady returns over time, making the investment appealing for the long term.

Over the subsequent months, GQG Partners continued to augment its position in the Adani group. In May, it acquired Adani stocks worth $500 million, followed by another $1 billion worth of shares in June. Furthermore, GQG Partners revealed that its holdings in Adani Transmission had surged to 6.54 per cent in early July, which translated to a value of Rs 5,887.32 crore based on the prevailing market price.

Digging into individual Adani group companies, GQG Partners Emerging Markets Equity Fund and Goldman Sachs Trust II – Goldman Sachs GQG Partners International Opportunities Fund jointly owned shares worth Rs 7,443 crore in flagship Adani Enterprises. Similarly, they held a combined stake worth Rs 6,189.40 crore in Adani Green Energy. For Adani Ports, the two funds possessed shares valued at Rs 5,022 crore.

In addition, GQG Partners Emerging Markets Equity Fund held stakes worth Rs 1,202 crore and Rs 1,710 crore in Ambuja Cements and Adani Ports, respectively.

Recently, a panel appointed by the Supreme Court concluded its investigation into the Adani group and found no evidence of stock price manipulation by the companies.

Responding to recent challenges, Adani expressed his commitment to continual improvement and gratitude for the support from stakeholders. Despite facing a crisis, the group successfully raised substantial funds from international investors and maintained its credit ratings, both in India and abroad.

The unwavering faith exhibited by GQG Partners and its substantial investment indicate the firm’s confidence in the Adani group’s long-term growth prospects. As the Adani conglomerate remains steadfast in its commitment to progress and transparency, the investments from prominent global players like GQG Partners serve as a testament to the group’s enduring appeal in the financial markets.