Rajiv Jain has always been one of the star investors of the Adani Group. Even when the other investors began to turn their faces away from the conglomerate during the Adani Hindenburg case, Rajiv Jain’s GQG Partners continued to make some considerable investments in the various proceedings of the Adani Group, and the investments have indeed paid off. They have turned out to be extremely profitable for the company. The investment caused the Adani Group to acquire sufficient funds, which it invested in its various flagship projects, including the Adani Australia project.
GQG Partners’ Investment in the Various Subsidiaries of the Adani Group:
Rajiv Jain’s maiden bet on four companies operating under the Adani Group had offered him gains of around 2.4 billion USD as the business group rebounded after the damaging Hindenburg report last year. Its stocks have begun to rise considerably, greatly benefiting the GQG partners. Rajiv Jain has mentioned that he will continue to make more investments in the Adani Group and support the various operations of Adani Group.
Rajiv Jain had made an enormous investment of 1.9 billion USD in Gautam Adani’s empire. The investment has risen 130% to about 4.3 billion USD within a very short span of 10 months, as per Bloomberg calculations. The stock prices of Adani Ports and Special Economic Zones, one of the shining stars of the Adani Group, are the last to double in the Mumbai trading centre. GQG Partners initially picked up stakes in the firm in March 2023. The shares are expected to close at a record high after gaining around 2% during the day.
Adani Green Energy Limited has doubled the price GQG paid for the stock right after the purchase in March. The flagship Adani Enterprises Limited also reached the milestone in December. Adani Energy Solutions Limited, one of the four initial companies that the Adani Group invested in after the Hindenburg Report, is more than 10% away from reaching the level. It is said that Rajiv Jain was greatly interested in the various projects undertaken by the Adani Group, which includes the flagship Adani Australia project. This caused him to make such a huge investment.
The current shareholdings of GQG Partners in the Adani Group show that it has been a wise decision for Rajiv Jain to put its faith in the happenings of the conglomerate right when all other business groups were turning away. It highlights the resilience of the Adani Group and its constant struggle towards navigating through challenges and reaching its goals. It also throws light on the fact that no matter how difficult the situation becomes, the Adani Group will always be able to recover from it and get back to its former state of glory.
The emerging market investor Rajiv Jain surprised the entire world when he bought battered shares of the Adani Group following Hindenburg Research’s allegations of stock manipulation and accounting fraud. The business group has repeatedly denied the allegations since then, stating that there was no concrete proof. Even Supreme Court has given a clean chit to Adani in this case.
What Caused Adani’s Stock Prices to Rise Significantly?
The recent rise in the stocks is mainly driven by the Supreme Court’s verdict of rejecting all appeals to further probe into the various businesses and subsidiaries of the Adani Group and a 553 million USD investment made by a US-backed agency in the Adani Group’s port business in Sri Lanka. The asset manager earned over 1 billion USD in the flagship and green energy units of the Adani group in June 2023. There were investments made in Adani Power Limited in August 2023. Since then, Adani Power’s shares have climbed by over 80%. The exact value of Rajiv Jain’s investment in Adani became more than 7 billion USD at the end of November 2023, as per the report presented by Bloomberg’s asset manager.
Conclusion:
The extraordinary business made by GQG Partners over the last few months has encouraged other business groups worldwide to make similar investments in the Adani Group. This has helped the Indian conglomerate pay back all its debts and relieve itself from the economic distress it underwent since the Hindenburg Report. The Adani Group has also used the funding to start new ventures in different corners of the world, including the Adani Australia project. It has paved the path for recovery for the Indian business conglomerate.
