Rajiv Jain’s boutique-style investment firm GQG Partners, which holds stakes in Adani Energy Solutions, Adani Enterprises, Adani Ports, Adani Power and Adani Green Energy Ltd, made strong notional gains of nearly Rs 1,840 crore, as these Adani scrips jumped up to 9 per cent on SEBI’s dismissal of Hindenburg allegations.
The Adani group investor, which manages $167.6 billion in funds, held Rs 49,172 crore worth Adani stocks today against Rs 47,333 crore a day ago, up Rs 1,839 crore or 3.88 per cent. GQG Partners was the first strategic investor in Adani group companies in the aftermath of Hindenburg Research report. Jain is Chairman and Chief Investment Officer (CIO) at GQG Partners.
“Adani Power is a good illustration of turnaround in India’s corporate history, with resolution on most regulatory issues & multiple value-accretive acquisitions. APL will deliver strong earnings growth driven by timely completion of projects & more PPA wins medium term. Initiate at OW & Top Pick,” Morgan Stanley said.
SEBI on September 18 concluded that Hindenburg Research’s allegations of fund routing through Adicorp, Milestone, and Rehvar to manipulate Adani’s listed companies did not hold. The regulator noted that while related-party transactions existed, they were disclosed and accounted for under the rules.
Jain’s Florida-headquartered private equity firm via its emerging market equity fund held 6,83,93,279 shares or 1.77 per cent stake in Adani Power. Besides, Goldman Sachs Trust II – Goldman Sachs GQG Partner (sub-advised by GQG Partners), held another 12,70,23,640 shares or 3.29 per cent stake in Adani Power. Based on market capitalisation of Adani Power at 10.30 am today, notional values of these holdings were up a combined Rs 945.55 crore.
GQG Partners LLC manages funds and is a wholly owned subsidiary of GQG Partners Inc, a Delaware corporation that is listed on the Australian Securities Exchange.
GQG made Rs 415.72 crore in notional gains in Adani Enterprises, Rs 205 crore in Adani Ports, Rs 147 crore in Adani Energy Solutions and Rs 124 crore in Adani Green Energy. GQG also held stake in Ambuja Cements in the past. But its holding in the cement maker dropped below 1 per cent in the June quarter.
SEBI concluded there was no violation of Listing Agreement or SEBI (LODR) Regulations as the impugned transactions do not qualify as “related party transactions”. It also noted that there was no violation of Section 12A of the SEBI Act and SEBI (PFUTP) Regulations as alleged in the SCN.
“Once, it is held that there is no violation of above two main issues, (referred at paras 6.1 and 6.2 above) it logically leads to conclusion that there is no violation of all other related violations alleged against the Noticees, which relates to non-disclosure/approval of the related party transaction,” SEBI said.
Adani Power soared 130 per cent to Rs 630.85 apiece from Rs 274.80 per share, nearly three years ago. Adani Ports jumped 86 per cent. Adani Energy Solutions at Rs 1 lakh crore m-cap is trading at one-third of Rs 3,07 crore market value it commanded in January 2023, falling 67 per cent. Adani Green Energy is down 47 per cent since while Adani Enterprises declined nearly 30 per cent.