Rajiv Jain, the founder of the investment firm GQG Partners Inc., is in Australia this week to meet with customers and investors. Jain will talk on a number of topics, including GQG’s investment in the Indian giant Adani Group, according to a statement released by the business on March 7.
Recent purchases by GQG Partners totaling $1.87 billion in shares of four Adani group firms. This was the first sizable investment in Adani since a stock crash in January following a damning analysis by short-seller Hindenburg Research. The investigation accused stock manipulation and improper exploitation of tax havens by Adani, increasing concerns over its debt levels. Adani refuted the charges and any wrongdoing.
An Australian pension fund customer of the company has questions about the stake purchase by GQG Partners, particularly in light of the fact that other significant investors, such as Norway’s national wealth fund, were selling Adani shares. Two people who spoke to Reuters under the condition of anonymity said that Jain is holding conference calls with some of GQG’s clients and in-person meetings with others.
Jain’s first trip to Australia since the business listed on the ASX in 2021, according to GQG, was planned well in advance of the Adani acquisition. The company added that the visit is an opportunity to address any inquiries that potential clients may have regarding the company, particularly those pertaining to the Adani investment.
For a total of $662 million, GQG invested in Adani Enterprises at a 3.4% share, Adani Ports and Special Economic Zone at a 4.1% stake, Adani Transmission at a 2.5% stake, and Adani Green Energy at a 3.5% stake. According to papers made by the Indian corporations, the company bought the shares from the Adani family trust.
The investment by GQG is viewed by many observers as evidence of investor support for Adani. The investment firm manages equity funds for institutional investors such as mutual funds, private funds, public agencies, and sovereign funds both in and beyond the US. Morningstar anticipates GQG’s funds under administration will increase at a mid-teens CAGR and surpass $180 billion by 2027.
