GQG Adani stake: GQG’s Rajiv Jain raises Adani stake by about 10% for $3.5 billion bet

GQG Adani stake: GQG’s Rajiv Jain raises Adani stake by about 10% for .5 billion bet

NEW DELHI: NRI investor Rajiv Jain‘s GQG Partners, which had made a brave contra call by investing over Rs 15,000 crore in Adani stocks in the peak of the Hindenburg-led stock rout, has raised its stake in Adani Group by about 10%.

“Within five years, we would like to be one of the largest investors in Adani Group depending on the valuation, after the family,” Jain was quoted as saying in a Bloomberg report which said the value of GQG’s Adani holdings was close to $3.5 billion.

“We would certainly want to be partners in any of Adani Group’s new offerings,” Jain said without specifying which companies he bought additional stake.

QGQ is said to have been buying Adani stocks in the last few days and is also keen to participate in the fundraising plan of the Ahmedabad-based apples-to-airport conglomerate.

Earlier in the month, Adani Enterprises and Adani Transmission had announced that they would raise funds totalling Rs 21,000 crore through the qualified institutional placement (QIP) route. While Adani Enterprises intends to raise Rs 12,500 crore, Adani Transmission would raise Rs 8,500 crore.

In March, Adani Group promoter entity SB Adani Family Trust had sold stakes to GQG in Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission and Adani Enterprises in a series of secondary block trade transactions.

The deal in Adani Enterprises by GQG was worth Rs 5,460 crore as shares were bought at Rs 1,410.86 apiece. APSEZ stock was bought at Rs 596.20 apiece and was worth Rs 5,282 crore.In the case of Adani Transmission, the Rs 1,898 crore deal was done at Rs 668.4 per share. In the case of Adani Green Energy, the transaction was worth about Rs 2,806 crore at a price of Rs 504.6 a share.

In an earlier interview last month, Jain had predicted that Adani stocks could give multibagger returns for him in the next 5 years.

During the day, Adani Enterprises was up over 15% while Adani Wilmar was locked in 10% upper circuit limit. Adani Power, Adani Transmission, Adani Green, Adani Total Goas and NDTV were also locked in 5% upper limits.

Shares of Adani Ports became the first in the group to inch back towards levels seen prior to the Hindenburg report. The stock rallied as much as 8% to hit the day’s high at Rs 785.95.

In the last 3 days, Adani stocks have altogether seen a jump of around Rs 2 lakh crore in market value on the back of a report by Supreme Court-appointed panel which said there is no evidence of price manipulation by the billionaire.

The SC committee, headed by former judge Justice AM Sapre, in its 173-page report, said that based on the data from Securities and Exchange Board of India (Sebi), it saw “no evident pattern of manipulation” in the steep stock price rise in billionaire Gautam Adani’s companies that can be attributed to “any single entity or group of connected entities”.

It was not possible to conclude whether there had been regulatory failures regarding price manipulations, the panel said in the report. The apex court had last week extended the deadline for Sebi to complete its probe in the Hindenburg issue till August 14.

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