Adani Shares Rise In India, Backer GQG Partners’ Shares Fall In Australia

GQG Partners' share price in ASX as of 4:10 pm GMT+11 stood at 1.44 AUD, 3.02 per cent down from previous close.

New Delhi: Adani Group investors have something to cheer about this week. The major listed companies of Adani Group have risen significantly this week after over a month of continuous downfall. Adani Enterprises rose 38 per cent, Adani Transmission rose nearly 10 per cent, Adani Ports and SEZ rose nearly 18 per cent and Adani Green Energy rose over 21 per cent as of 11:20 am IST, Friday, 3 March 2023.

When the overall rise this week could be attributed to the roadshow Adani Group held in Hong Kong and Singapore to woo investors, today’s rise could be attributed to the news that was out yesterday that US-based investment firm GNQ Partners pumped in $1.9 billion into Adani Group companies.

The news brought relief to Adani Group and investors in India. However, it doesn’t seem to have played out well for GQG Partners which is listed in Australian Securities Exchange Ltd (ASX). GQG Partners’ share price in ASX as of 4:10 pm GMT+11 stood at 1.44 AUD, 3.02 per cent down from previous close.

GQG Partners has invested $660 million in the flagship company Adani Enterprises; $640 million in Adani Ports and Special Economic Zone; $230 million in Adani Transmission; and $340 million in Adani Green Energy.

In an interview to the Financial Times, the Chairman and Chief Investment Officer of GQG Partners Rajiv Jain told that, “What is not being appreciated is that these are assets run by very competent management. The execution capabilities are fantastic.”

While shrugging off the allegations made by Hindenburg, Rajiv Jain told, “That’s what makes a market, people have their opinions. We fact checked everything and we felt the market was mispricing Adani.”

Rajiv Jain said GQG Partners had been looking into Adani Group for more than five years, and that its shares were at times overpriced, although he said this was the case for many technology stocks, said the FT report. Jain also added GQG Partners had done extensive due diligence on the sprawling conglomerate and it was taking a long-term view.

“This has been a very deep dive in a lot of different areas,” he said. “Could we still be wrong? Yes, of course.”