Buoyed by $1.9 bn investment by GQG Partners, Adani rally enters 2nd week

Buoyed by the $1.9 billion investment by US-based GQG Partners, Adani Group stocks extended their winning run on Monday. Except for ACC and Ambuja Cements, the other eight group stocks rose between 1 per cent and 6 per cent, adding Rs 30,250 crore in market value. 

Last week, 10 Adani Group companies had added Rs 1.4 trillion in market capitalisation (m-cap) after Rajiv Jain-led GQG picked up stake in four firms from an Adani family trust.

Jain’s vote of confidence has helped revive investor interest in the beleaguered group which saw over Rs 12-trillion wipeout in m-cap, following US short-seller Hindenburg Research’s January 24 report, which alleged accounting fraud and share-price manipulation.

At the last close, Adani Group had a total m-cap of Rs 8.9 trillion. Besides an impressive track record, Jain is known for his winning bets in a handful of troubled companies.

The backing comes at a key time for Adani Group, which has pared its aggressive growth plans and tried to assuage concerns about its debt levels.

Industry players said the GQG investment will provide a floor to Adani stocks and also ease concerns around promoter-share pledges.

In an interview after the Adani investment on Thursday, Jain had said, “What is missing here, what nobody talked about, as these are phenomenal, irreplaceable assets. You have to be greedy when people are fearful. Whenever parties are going on, we stand on the sidelines watching people dance most of the time.”