GQG Partners’ Shopping Worth $1.9 Billion In Adani Companies: Key Things To Know

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.

New Delhi: In a big relief to Gautam Adani and his crisis-hit business empire, US-based investment firm GQG Partners has pumped in $1.9 billion into four Adani Group companies. The conglomerate’s listed companies have nosedived following a report by US-based short seller Hindenburg Research accusing the company of stock manipulation, improper use of offshore tax havens, and raised concerns regarding its debt levels.

What Exactly Is GQG Partners? Who’s Behind It?

GQG Partners was founded by Rajiv Jain in 2016. Jain, who serves as the Chairman and Chief Investment Officer of GQG Partners, also serves as the portfolio manager for all GQG Partners strategies, as per the information available on LinkedIn.

When he began his own investment firm, Jain had a rich experience of over 23 years, most notably as the Co-Chief Executive Officer (from July 2014) and Chief Investment Officer and Head of Equities (from February 2002) at Vontobel Asset Management.

How’s GQG Partners’ Investment Split Across Adani Group?

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.

What GQG Partners Said On The Investment

In an interview to the Financial Times, 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.”

GQG had a total of $92bn under management in January this year.

What Adani Group Said On The Investment

Adani Group’s Chief Financial Officer (CFO) Jugeshinder Singh said the transaction made GQG a “strategic investor”.

“We are delighted to complete this landmark transaction with GQG. We value GQG’s role as a strategic investor in our infrastructure and utility portfolio of sustainable energy, logistics and energy Transition. This transaction marks the continued confidence of global investors in the governance, management practices and the growth of Adani Portfolio of companies,” said Mr Singh.

Adani Group has been looking for credible investors to boost up investor confidence that took a big hit following after Hindenburg Research published its report on 24 January 2023. The conglomerate is hoping that GQG Partners’ backing will help win investors.