The star non-resident Indian investor Rajiv Jain’s GQG Partners made a risky bet worth Rs 15,446 crore on the troubled Adani stock market, and it paid off for him with a return of over Rs 3,100 crore in just two short days.
It has been determined that Jain’s investment in four different Adani stocks, namely Adani Enterprises, Adani Ports and Special Economic Zone, Adani Green Energy, and Adani Transmission, is now worth a total of Rs 18,548 crore on the market. This translates into a hypothetical profit of 3,102 crores of Indian rupees.
GQG Partners, a $92 billion fund, had bought stakes in four companies owned by billionaire Gautam Adani following a month-long rout in Adani stocks in the aftermath of a damaging report published by Hindenburg Research. The fund stated that the long-term growth prospects for these companies are substantial.
In the block deal that took place on Thursday, Jain purchased shares of Adani Enterprises at a price of Rs 1,410.86 per share. Since then, the price of the stock has increased by 33%, which has resulted in a profit for him on the Nifty stock of Rs 1,813 crore.
In a similar fashion, Adani Ports, Adani Green Energy, and Adani Transmission were all purchased for a total of Rs 596.2, Rs 504.6, and Rs 668.4 respectively.
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However, following an investment in Adani companies that have been accused of stock manipulation and accounting fraud by Hindenburg, the share price of GQG Partners, which is listed in Australia, finished 3% lower on Friday.
As part of the transaction, the promoter entity known as SB Adani Family Trust sold a portion of its stake in the apples-to-airport conglomerate in order to generate cash that will most likely be used to pay off some of the company’s outstanding debts.
According to Jain, the recent decline in the stock market has made it possible for him to acquire “fantastic assets” at prices that are favourable.
He told The Australian Financial Review that his team had been following Adani companies closely for five years, but the valuations were in no man’s territory. He went on to say that the airport, port, and energy assets owned by the Adani companies were “fantastic,” “irreplaceable,” and available at a good price. He also said that the assets were available at a good price.
“Hindenburg has their view, and we have our view, and we happen to disagree with their view, but that’s what makes a market,” said Jain. “We have our view, and we happen to disagree with their view.”
Since the end of January, the total market value of 10 Adani stocks has decreased by more than half, resulting in a loss of more than Rs 10.65 lakh crore. However, over the course of the past week and a half, Adani shares have been on an incredible tear, thanks to the newsflow surrounding the GQG deal and the prepayment of loans by the conglomerate. The investment also contributes to the perception that Adani stock has reached a stable state.
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