In recent market developments, shares of Adani group firms experienced a significant surge, resulting in substantial profits for GQG Partners, led by Rajiv Jain. Despite the pending Hindenburg order, GQG successfully accumulated gains of approximately Rs 3,000 crore in a single trading session. This article explores the details of GQG’s investments and the recent performance of Adani group stocks.
Investments and Stakes: According to data compiled from AceEquity, GQG Partners holds stakes in six out of the ten listed Adani group firms, including Adani Power Ltd, Adani Energy Solutions Ltd, Adani Enterprises Ltd, Adani Green Energy Ltd, Adani Ports & SEZ, and Ambuja Cements. The total value of GQG’s investments stood at around Rs 31,000 crore as of the recent closing levels.
Adani Power Ltd recorded a significant intraday climb of 13.75 percent, reaching Rs 451.50 on the BSE. GQG Partners’ EM Equity Fund held a 1.28 percent stake in this particular Adani group firm as of September 30th. Additionally, Goldman Sachs Trust II – Goldman Sachs GQG Partner held a 2.75 percent stake in Adani Power.
Adani Energy Solutions Ltd saw a surge of 17.75 percent in its share price, reaching Rs 860. Goldman Sachs Trust II – Goldman Sachs GQG Partners International Opportunities Fund held a 2.49 percent stake in this company as of September 30th.
Adani Enterprises, the flagship firm of the Adani group, saw its shares locked at the 10 percent upper circuit limit at Rs 2,449.45. At the end of September, two GQG-related funds held a combined 2.74 percent stake in Adani Enterprises.
Adani Green Energy experienced a significant climb of 13.50 percent, while Adani Ports and Ambuja Cements recorded increases of 5.32 percent and 4.59 percent respectively. GQG holds stakes ranging from 1.8 percent to 3.6 percent in these three Adani group firms.
GQG Partners as Adani Group’s First Investor: Following the Hindenburg Research report, which triggered a $150 billion rout in Adani group shares, GQG Partners emerged as the first investor in the group. On March 2nd, GQG Partners made investments of Rs 15,446.35 crore in four of the group’s companies. Subsequently, GQG increased its stakes in multiple Adani group firms progressively.
Current Market Capitalization and Supreme Court’s Involvement: Despite the recent surge, the market capitalization of the Adani group remains approximately 40 percent lower than the level on January 24th, when the Hindenburg Research report was released, claiming stock manipulation and accounting fraud. Following the report, the Supreme Court instructed the Securities and Exchange Board of India (SEBI) to investigate the allegations.
In the recent Supreme Court hearing, the court reserved its order after hearing multiple pleas related to the Adani-Hindenburg case. While the Chief Justice of India, DY Chandrachud, suggested not doubting the market watchdog’s probe solely based on media reports, the court emphasized the need for SEBI to complete its investigation in all 24 cases.
Conclusion: The recent surge in Adani group shares has resulted in significant profits for GQG Partners, led by Rajiv Jain. Despite the pending Hindenburg order, GQG has successfully capitalized on the bullish momentum of Adani group stocks. The Supreme Court’s involvement in the case adds an element of uncertainty to the future of these stocks. Investors and market participants will be closely monitoring the developments in this high-profile case.