‘Adani stocks could be multibaggers over five years,’ says GQG’s Rajiv Jain weeks after investing Rs 15,446 cr

Rajiv Jain, CIO of US-based boutique investment firm GQG Partners, who invested Rs 15,446 crore in four Adani Group firms, said he belives the stocks “could be multibaggers” over five years.

Speaking to Bloomberg, Jain said he’s unfazed by US short seller Hindenburg Research’s allegations against Adani Group.

Led by billionaire Gautam Adani, the group’s seven listed stocks have lost about $120 billion in market value since a January 24 report by Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation, allegations the group has denied.

Last month, SB Adani Family Trust has cumulatively sold about 21 crore in four of the Adani Group companies through the open market. GQG Partners bought 2.84 crore shares of Adani Transmission at Rs 668.4 apiece aggregating to Rs 1,898 crore, 3.87 crore shares of Adani Enterprises Ltd at Rs 1,410.86 apiece aggregating to Rs 5,460 crore, 8.86 crore shares of Adani Ports at Rs 596.2 apiece aggregating to Rs 5,282 crore, 5.56 crore shares of Adani Green Energy Ltd at Rs 504.60 apiece aggregating to Rs 2,806 crore.

Jain pointed to Adani’s coal mining assets, his data centers and his majority stake in Mumbai’s busy international airport as signs of a healthy business.

“We believe the airport itself could be worth more than the company,” Jain told Bloomberg, noting that the land alone stretches across some of Asia’s most expensive urban real estate.

Jain also responded to Hindenburg’s allegations of Adani Group using a labyrinth of offshore accounts connected to Adani family to skirt Securities and Exchange Board of India requirements that public shareholders own at least 25% of a stock. Adani Group has denied the claims.

“One of the issues raised was that he owns more than 75% of the company, right? And let me ask you in real simple English, is that fraud?” Jain said. “Is it not disclosed properly? Yeah, it’s some of that, you could argue that, but is it fraud?”

Meanwhile, Rajiv Jain is one of the latest entrants in Forbes Billionaires 2023 list with a net worth of $2 billion.

The billionaire chairman of the Fort Lauderdale-based GQG Partners owns 69% stake in it. The company was co-founded by Jain and the firm’s CEO Tim Carver in 2016. According to a Forbes report from last month, the firm has $92 billion in assets under management. The firm invests in “20th century businesses” like oil, tobacco etc.

With inputs from agencies