Adani stocks increase Rajiv Jain of GQG Partners' wealth by 82% and place Gautam Adani as the second richest Indian

7 Dec 2023 , 12:18 PM

Due to accusations of accounting fraud and stock manipulation, Adani was removed from the world rich list in late January of last year. Thanks to a spectacular run in the Adani firm equities, which also paid off for the guy who had stuck with the firm despite all odds, Gautam Adani emerged as the second wealthiest Indian by December, generating an 82% return on investment for Rajiv Jain of GQG Partners.

In less than a year, Jain’s GQG Partners had almost doubled its investments in Adani shares. Based on the closing share prices on December 6, Prime Database data shows that GQG’s portfolio worth in Adani Group firms increased to Rs 39,331 crore. This represents an 82% total return on its Rs 21,660 crore investment, made in three installments over the course of the year beginning in March 2023, in various Adani Group entities. 

Investments in Adani Enterprises Ltd., Adani Green Energy, Adani Ports and SEZ, and Adani Power drove the increase, virtually doubling their value in the wake of the recent stock market boom.

With a current valuation of Rs 9,024 crore, GQG invested Rs 3403 crore in Adani Enterprises. The original investment of Rs 4,743 crore by Adani Green Energy was increased to Rs 8,800 crore. GQG increased its stake in Adani Ports from Rs 4,472 crore to Rs 7,766 crore, and increased its investment in Adani Power from Rs 4,245 crore to Rs 8,718 crore.

Adani Energy Solutions, Adani Enterprises Ltd., Adani Green Energy, and Adani Ports SEZ are the four Adani Group entities in which Rajiv Jain-led GQG Partners invested Rs. 11,849 crore on March 2.

The business gave Adani Energy Solutions and Adani Green Energy Ltd. an approximate investment of Rs 2,776 crore in June. On August 16, the proprietors of Adani Power sold 15.21 crore shares to GQG in a deal valued at Rs 4,245 crore. Since then, the share price of Adani Power has increased by 90%, bringing the total investment made by GQG to around Rs 8,858 crore. The amount that GQG has invested in Ambuja Cements as of the September 2023 quarter was Rs 1,520 crore.

Since November 24, the Adani Group’s stocks have surged, increasing its market value by around Rs 4.5 lakh crore to Rs 14.8 lakh crore. A prolonged surge in the market, the Supreme Court’s ruling not to launch an investigation into the group on the basis of the accusations made by a US short-seller, the BJP’s decisive election win in the Hindi heartland, and the US agency’s designation of the Hindenburg accusations of accounting fraud and stock manipulation as ‘irrelevant’—all contributed to the revival of investor confidence in the group.

Chairman Gautam Adani’s wealth increased by almost $10 billion due to the jump in Adani Group equities; according to the Bloomberg Billionaires Index, his fortune now exceeds $70 billion. This fueled him.

The $553 million investment in Adani Ports’ Colombo project was made recently by the US International Development Finance Corporation. According to a Bloomberg article, the US government disregarded Hindenburg Research’s allegations against Adani Group as unfounded.

On November 24, the Supreme Court issued a warning against accepting Hindenburg’s assertions at face value and postponed making a decision on Sebi lawsuits pertaining to them. Adani Group restated that the study used fabricated information to create an inaccurate narrative.

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