Investment firm GQG Partners is in talks for an additional investment of around $1 billion in Adani Group shares, having reaped bumper returns on the close to $2 billion it ploughed into the conglomerate’s stocks in March, said people with knowledge of the matter.
The investment, if it goes through, will be part of the Adani Group’s effort to raise funds from stake sales in three companies – Adani Enterprises, Adani Green Energy and Adani Transmission.Earlier in March, GQG had invested ₹15,446 crore in four Adani Group companies – flagship Adani Enterprises, Adani Ports and Special Economic Zone, Adani Green Energy and Adani Transmission – through block deals. The value of this investment is estimated to have crossed ₹25,000 crore as per latest stock prices.
US-headquartered GQG has already increased its stake in the Adani Group by 10% since its initial investment by buying shares in the open market, Bloomberg reported, citing Rajiv Jain, the fund’s founder and chief investment officer.
He added that, within five years, GQG wants to be one of the largest investors in the Adani Group after the promoter family.
Coupled with the sharp recovery in Adani Group stocks, the value of GQG’s investment has already reached close to $3.5 billion, Jain told Bloomberg without elaborating. GQG and Adani Group didn’t respond to queries.
In a call with investors in March in Australia, where GQG is listed, Jain had indicated that the fund is likely to increase its investment in the Gautam Adani-led conglomerate.
“Chances are we’ll probably buy more because we typically initiate a position and then depending on how things go and how the earnings come through, we tend to get it to full size because we’re not at full size at this point,” Jain had told reporters a week after buying into the Adani Group in March.
Jain, who is known to make bold bets on a few companies rather than casting a wide net, had picked up the stakes in Adani Group stocks at a time when jittery investors were dumping them following the Hindenburg Research report in late January. The New York-based short-seller accused the Adani Group of fraud and stock manipulation. The Adani Group has denied all allegations.
On May 13, Adani Enterprises and Adani Transmission got board approval to raise up to Rs 12,500 crore and Rs 8,500 crore, respectively, through qualified institutional placements (QIPs). The board of Adani Green Energy will be meeting soon to consider a similar proposal.
The conglomerate’s stocks have been on a recovery path since GQG’s investment and have made smart gains in the last three sessions. On Friday, a Supreme Court-appointed expert committee report said that the investigation had so far not found instances of breach of regulations pertaining to related party transactions by the Adani Group, boosting investor confidence.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
