GQG’s Rajiv Jain likely to step up investment by buying more Adani stocks

GQG's Rajiv Jain likely to step up investment by buying more Adani stocks

The founder of GQG Partners, Rajiv Jain, stated on Wednesday that his investment company will likely raise its stake in the ports-to-power conglomerate, a week after infusing over Rs 15,000 crore into Adani Group. Odds are we’ll purchase more since we usually start a stake 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 yet at full size, Jain said on a call with journalists in Sydney, according to Reuters.

In-depth details about GQG’s Rajiv Jain likely to step up investment by buying more Adani stocks

Adani Green Energy, Adani Transmission, Adani Enterprises, and Adani Ports are the four Adani group firms that GQG Partners, a US-based boutique investment firm, purchased shares of earlier this month for a total of Rs 15,446 crore. This was the largest investment made into Adani, whose stock prices plummeted after a damning study by American short-seller Hindenburg Research.

Yet, shares of Australia-listed GQG Partners plummeted 4% the day after it made its investment in Adani. In order to defend the company’s involvement in the conglomerate, which the short-seller claims is engaged in stock manipulation and fraud through offshore shell companies, Rajiv Jain is currently in Australia.

GQG’s investment in the ailing company has been justified by Rajiv Jain, who also said that Gautam Adani, the group’s chairman, is widely recognised as one of the best businessmen of his generation. “We feel that the long-term growth prospects for these companies are tremendous,” he had stated in a statement announcing the investment. He recently declared that he disagreed with Hindenburg’s assertions after his company conducted its own “deep dive” into Adani.

Jain, who is based in Florida, travelled to Australia this week to meet with investors, including some of that country’s biggest pension funds, according to Reuters. Earlier this week, Cbus Super, a pension fund investor with A$71 billion ($46.82 billion) under control, informed Reuters that it had contacted GQG regarding its shares agreement with Adani.

Jain answered, “The feedback actually has been, frankly, more positive than I would have thought because they feel that’s how we differentiate ourselves,” when asked how the clients had reacted to the Adani contract. “We conduct our deep dig, and we don’t follow the herd.”

Jain said that GQG had a fantastic opportunity to start roles, and predicted that “depending on the cost and the quality of their delivery, the size will likely rise” over time.

Australia is home to significant coal assets owned by Adani, which may conflict with other Australian investors’ and superannuation funds’ environmental, social, and governance (ESG) goals.

Jain stated that while he agrees with the long-term energy transition, fossil fuels cannot be eliminated right away. “It’s a more convenient topic rather than a real issue. Many folks only perform the box-checking activity. We believe you should transition, but the transition must be grounded on some practical elements “explained by him.

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