GQG Partners was the first strategic investor in Adani Group entities following the Hindenburg Research study. Jain is the Chairman and Chief Investment Officer (CIO) at GQG Partners.
Rajiv Jain’s boutique-style investment firm GQG Partners, which owns Adani Energy Solutions, Adani Enterprises, Adani Ports, Adani Power, and Adani Green Energy Ltd, made strong notional gains of nearly Rs 1,840 crore after SEBI dismissed the Hindenburg allegations. These Adani scrips jumped up to 9%.
The Adani group investor, which oversees $167.6 billion in funds, owned Rs 49,172 crore in Adani equities today compared to Rs 47,333 crore the day before, up Rs 1,839 crore or 3.88 percent. GQG Partners was the first strategic investor in Adani Group entities following the Hindenburg Research study. Jain is the Chairman and Chief Investment Officer (CIO) at GQG Partners.
“Adani Power is a good example of a turnaround in Indian corporate history, having resolved the majority of regulatory difficulties and making many value-enhancing acquisitions. APL’s earnings growth will be driven by timely project completion and further PPA wins in the medium term. Start at OW and Top Pick,” Morgan Stanley advised.
SEBI concluded on September 18 that Hindenburg Research’s allegations of financial routing through Adicorp, Milestone, and Rehvar to manipulate Adani’s listed firms were not true. The regulator highlighted that, while related-party transactions existed, they were disclosed and accounted for in accordance with the requirements.
Jain’s Florida-based private equity firm, through its developing market equity fund, owns 6,83,93,279 shares, or 1.77 percent of Adani Power. In addition, Goldman Sachs Trust II – Goldman Sachs GQG Partner (sub-advised by GQG Partners) owned an additional 12,70,23,640 shares, or 3.29 percent of Adani Power. Based on Adani Power’s market capitalization at 10.30 a.m. today, the notional values of these holdings increased by a total Rs 945.55 crore.
GQG Partners LLC administers funds and is a wholly owned subsidiary of GQG Partners Inc, a Delaware corporation traded on the Australian Securities Exchange.
GQG achieved notional gains of Rs 415.72 crore in Adani Enterprises, Rs 205 crore in Adani Ports, Rs 147 crore in Adani Energy Solutions, and Rs 124 crore in Adani Green Energy. GQG previously held an interest in Ambuja Cements. However, its stake in the cement company fell below 1% in the June quarter.
SEBI ruled that there was no violation of the Listing Agreement or the SEBI (LODR) Regulations since the challenged transactions did not qualify as “related party transactions”. It further stated that there was no infringement of Section 12A of the SEBI Act or the SEBI (PFUTP) Regulations, as alleged in the SCN.
Adani Power stock gained 130 percent to Rs 630.85 per share, up from Rs 274.80 nearly three years ago. Adani Ports had an 86% increase. Adani Energy Solutions, with a market capitalization of Rs 1 lakh crore, is trading at one-third of its market value of Rs 3,07 crore in January 2023, down 67%. Adani Green Energy is down 47% since then, while Adani Enterprises is down roughly 30%.
