US Management Firm GQG Partners Invest around $1.9-Billion in Adani Companies

BUSINESS

After his conglomerate was hit by a short seller attack five weeks ago, infrastructure tycoon Gautam Adani received a boost from the investment firm GQG, which is based in the United States. Adani said on Thursday that in secondary market trades, GQG Partners, which was founded by Rajiv Jain in 2016 and is listed in Australia, purchased $1.87 billion worth of Adani stock.

Following a report by Hindenburg Research claiming the group engaged in accounting fraud and stock manipulation, the group’s companies’ shares had plummeted. Although Adani has denied the allegations, the subsequent collapse of the stock market reduced the group’s market value by $145 billion.

Rajiv Jain said that, what is not appreciated is that these are assets run by very competent management. The capabilities of execution are outstanding. The asset manager purchased shares in Adani Enterprises, the group’s flagship business, for $660 million, Adani Ports and Special Economic Zone receive $640 million, $230 million in Adani Transmission’s electricity unit, and Adani Green Energy, a $340 million renewable energy company.

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Before starting his own business, Rajiv Jain, who worked for Swiss group Vontobel Asset Management for more than two decades, denied the claims made by Hindenburg. People’s opinions are what make a market, that is what makes it so.

Rajiv Jain said that, they have checked the facts on everything, and they concluded that the market was mispricing Adani. In January 2023, GQG managed $92 billion in total. Jugeshinder “Robbie” Singh, chief financial officer of Adani Group, said that the transaction made GQG a strategic investor. Analysts have also said that Adani was seeking a reputable investor to assist in halting the collapse of the share price, and the organization will hope that GQG’s support will help it win over investors.

Additionally, Adani has pledged to reform governance in his empire’s privately held businesses. According to attendees of the meetings, the group informed bondholders this week that it had secured a $3 billion credit line from investors, including a sovereign wealth fund.

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