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GQG eyes bigger Adani bets

Rajiv Jain said fund generally initiates position and increases its investment depending on earnings of investee company
Rajiv Jain
Rajiv Jain

Our Special Correspondent   |   Mumbai   |   Published 09.03.23, 02:55 AM

Rajiv Jain, the founder of GQG Partners, which pumped nearly $1.9 billion into four Adani companies, said the marquee fund would likely increase its investment in the conglomerate.

In a call with the press in Sydney, Jain said the fund generally initiates a position and increases its investment depending on the earnings of the investee company.


The GQG founder said the fund has invested in some “unique assets” from a longterm perspective.

“Chances are we’ll probably buy more because we typically initiate a position and then depending on how things go and how the earnings come through we tend to get it to full size because we’re not at full size at this point,’’ Reuters quoted him as saying.

Last week, the promoter family raised Rs 15,446 crore by selling stakes in Adani Enterprises (AEL), Adani Ports & Special Economic Zone (APSEZ), Adani Transmission Ltd (ATL), and Adani Green Energy Ltd (AGEL) to GQG Partners.

The investment consolidated a nascent recovery in Adani group stocks which were under intense pressure because of a report by US shortseller Hindenburg, which alleged the group of committing accounting fraud.

Florida-based Jain had come to Australia to meet his investors, which included the island nation’s largest pension funds. A spokesperson from GQG said Jain had planned his visit in advance.

On questioned about the reaction of his investors to the purchase of the Adani stocks, Jain said the response had been more positive than he anticipated. GQG, he said, is known for not following the herd.

Earlier in an interview to The Australian Financial Review, Jain said the drop in the share price of the Adani group had allowed him to buy "fantastic assets’’ at attractive price. Jain said he disagrees with Hindenburg on the US short seller’s assessment of the financials of the group companies.

He said he was not worried about the leverage in the Adani group; at 2.5 times EBITDA (earnings, before interest, taxes, depreciation & amortisation), the leverage was modest against 6.5 times for the top 10 utility assets in the US.

Jain’s comments in Australia on raising his exposure to the Adani stocks comes at a time the group is holding roadshows in Dubai, London, and the US to boost investor confidence.

Shares jump

All the Adani group stocks on Wednesday ended in the green with flagship Adani Enterprises Ltd (AEL) closing at a one-month high after the promoters prepaid share-backed loans of Rs 7,374 crore.

The AEL share crossed the Rs 2000 mark and settled at Rs 2,039.65 on the BSE — a gain of Rs 56.80 or 2.86 per cent, after hitting an intra-day peak of Rs 2,085.45 the highest in a month.

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