It is no secret that India’s most profound business group, The Adani’s, has been treading troubled waters since the Hindenburg report was released. Thus amid its falling stock prices, Rajiv Jain’s rather astonishing decision to bet its fortune on this sinking industrial group proved Adani’s only ray of hope.
Rajiv Jain is the co-founder and CIO of GQG Partners, which manages $92 billion in assets and is best recognized for investing in stable, developing firms in the tobacco and energy sectors. Jain has now placed a $1.9 billion wager on Adani through four of his conglomerate’s publicly traded equities.
Jain’s investment comes after a dramatic decline in Adani’s stock value due to complaints about the company’s business operations. The primary business, Adani Enterprises, has lost 48% this year despite accusations of stock price manipulation and fraud by short seller Hindenburg, who published a thorough study in late January. Although Adani has denied the allegations, the billionaire group’s chairman swiftly lost his position as Asia’s richest man as shares of his eight publicly traded firms plummeted.
But Jain claims to have read the report but also conducted his own and reached a different conclusion that did not discourage them from investing.
Jain’s investment revealed on Thursday brings some respite for the struggling industrialist. Over the past week, shares of Adani Enterprises and Adani Ports have increased by 66% and 23%, respectively.
The visionary highlights that this is a long-term investment and states that he anticipates returns in the “mid- to high-teens,” praising Adani’s infrastructure portfolio, which he believes will appreciate over time.
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