Adani Enterprises, Adani Ports, Adani Green, Adani Transmission: GQG now owns Rs 26,000 cr worth Adani shares

Rajiv Jain-led GQG Partners doubled down its bet on the Adani group in a matter of five months, with its combined holdings in five Adani stocks --- Adani Enterprises Ltd, Adani Ports, Adani Green Energy Ltd, Adani Transmission Ltd and Ambuja Cements -- now worth close to Rs 26,000 crore (Rs 25,746 crore). This accounts for 3.23 per cent of the total market capitalisation of the five Adani group entities, calculated at Wednesday's trading prices.

Jain had in an interview to Bloomberg in May said GQG would like to be one of the largest investors in Adani Group after the family within five years depending on the valuation. His GQG Partners first made Rs 15,446 crore investments in four of Adani group stocks in early March. That big investment was in fact made a day after the Supreme Court asked the market regulator Sebi to conduct an investigation to ascertain if the conglomerate violated market norms, in the wake of Hindenburg Research scathing report. The report had alleged "brazen stock manipulation and accounting fraud for decades” at Adani group companies. The Adani group denied such reports as "a combination of a targeted misinformation and discredited allegations, the majority of them dating from 2004 to 2015." GQG showed faith.

"Adani is kind of unique because they are in a very strong investment phase even now. And what we've seen, for example, in ports is that it is a very good sort of a case study that after certain years you will see a hockey stick of earnings come through. The infrastructure assets have a very long tail. The returns are regulated by the government most of the time. After the initial setup, you can get very steady returns. So, to grow you need to keep investing more capital, so they are always free cash flow negative. So, they're always free cash flow negative, but you get very high returns, on a long-term basis," Jain said in the May interview to Bloomberg.

GQG bought Adani stocks worth $500 million in May. It added another $1 billion worth Adani shares in June. In early July, GQG Partners said its holding in Adani Transmission has jumped to 6.54 per cent. That 6.54 per cent stake as on Wednesday's price was worth Rs 5,887.32 crore.

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In the case of flagship Adani Enterprises, GQG Partners Emerging Markets Equity Fund (1.06 per cent) and Goldman Sachs Trust II- Goldman Sachs GQG Partners International Opportunities Fund (1.61 per cent) together owned Rs 7,443 crore worth shares, data compiled from the corporate database AceEquity suggests.

GQG Partners Emerging Markets Equity Fund (1.32 per cent) and  Goldman Sachs Trust II - Goldman Sachs GQG Partners International Opportunities Fund (2.18 per cent) together owned another Rs 6,189.40 crore worth stake in Adani Gree Energy. In Adani Ports, the two funds owned Rs 5,022 crore worth shares.

In the case of Ambuja Cements and Adani Ports, GQG Partners Emerging Markets Equity Fund held shares worth Rs 1,202 crore and Rs 1,710 crore.

A Supreme Court-appointed panel recently found no evidence of stock price manipulation in the Group companies.

"It is my commitment that we will continue to strive to keep improving these, every single day. Our track record speaks for itself, and I am grateful for the support our stakeholders have shown as we went through our challenges. It is worth noting that even during this crisis – not only did we raise several billions from international investors – but also that – no credit agency – in India or abroad – cut any of our ratings," Adani said earlier this month.

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