Adani Shares: Rajiv Jain's GQG Mints Rs 3,000 Cr Profit as SC Reserves Hindenburg Order

Introduction

In a remarkable turn of events, shares of Adani group firms experienced a substantial surge of up to 20 percent in Tuesday's trade. This surge coincided with GQG Partners, led by Rajiv Jain, making a staggering Rs 3,000 crore in profits during a single session. This article delves into the details of this significant development, exploring the Adani group's investments, the role of GQG Partners, and the current state of affairs in light of the Supreme Court reserving its order in the Adani-Hindenburg case.

Adani shares: Rajiv Jain's GQG mints Rs 3,000 cr profit as SC reserves Hindenburg order

Adani Group's Investment Landscape

Overview of GQG's Stakes

The data compiled from the corporate database AceEquity reveals that the Adani bull, GQG Partners, held stakes in six out of the 10 listed Adani group firms. These include Adani Power Ltd, Adani Energy Solutions Ltd, Adani Enterprises Ltd, Adani Green Energy Ltd, Adani Ports & SEZ, and Ambuja Cements. The total value of GQG's investments stood at approximately Rs 31,000 crore, showcasing a notable increase from the previous closing levels.

Individual Firm Performance

• Adani Power Ltd: On Tuesday, shares of Adani Power Ltd surged by 13.75 percent intraday to Rs 451.50 on BSE. GQG Partners EM Equity Fund held a 1.28 percent stake in this Adani group firm as of September 30.
• Adani Energy Solutions Ltd: The shares of this company soared by 17.75 percent to Rs 860, with Goldman Sachs Trust II - Goldman Sachs GQG Partners International Opportunities Fund holding a 2.49 percent stake as of September 30.
• Adani Enterprises Ltd: The flagship firm of the Adani group, Adani Enterprises, witnessed a 10 percent upper circuit limit at Rs 2,449.45. Two GQG-related funds collectively owned a 2.74 percent stake as of September end.
• Adani Green Energy, Adani Ports, and Ambuja Cements: These three Adani group firms experienced notable percentage increases, with GQG holding a 1.8-3.6 percent stake in each.

GQG Partners: A Strategic Investor

GQG Partners played a pivotal role as the first investor in the Adani group following the Hindenburg Research report. This report triggered a significant $150 billion rout in Adani group shares. On March 2, GQG Partners made substantial investments totaling Rs 15,446.35 crore in four of the group companies. Following this, GQG strategically increased stakes in multiple Adani group firms in a staggered manner.

Market Capitalization and Legal Developments

Despite the intraday market capitalization of Adani group exceeding Rs 11 lakh crore, it remains down by about 40 percent from the Rs 19.19 lakh crore level on January 24. This decline is attributed to the Hindenburg Research report's claims of stock manipulation and accounting fraud by the Adani group. The Supreme Court, in response to these allegations, instructed the Securities and Exchange Board of India (Sebi) to conduct a thorough probe.

On Friday, the Supreme Court reserved its order in the Adani-Hindenburg case after hearing multiple pleas. The Chief Justice of India, DY Chandrachud, emphasized the need for Sebi to complete the probe in all 24 cases, suggesting that doubts based on media reports alone cannot undermine the market watchdog's investigation.

FAQs (Frequently Asked Questions)

Q: What triggered the surge in Adani group shares?

The surge in Adani group shares was concurrent with GQG Partners, led by Rajiv Jain, making a remarkable Rs 3,000 crore in profits in a single session.

Q: Which Adani group firms did GQG Partners have stakes in?

GQG Partners held stakes in six out of the 10 listed Adani group firms, including Adani Power Ltd, Adani Energy Solutions Ltd, Adani Enterprises Ltd, Adani Green Energy Ltd, Adani Ports & SEZ, and Ambuja Cements.

Q: How much did GQG Partners invest in Adani group firms on March 2?

On March 2, GQG Partners made significant investments totaling Rs 15,446.35 crore in four Adani group companies.

Q: What is the current market capitalization of Adani group?

The intraday market capitalization of Adani group surpassed Rs 11 lakh crore. However, it remains down about 40 percent from the level on January 24, following the Hindenburg Research report.

Q: What role did the Supreme Court play in the Adani-Hindenburg case?

The Supreme Court reserved its order in the Adani-Hindenburg case, emphasizing the need for Sebi to complete the probe in all 24 cases related to the Adani group.

Conclusion

The recent surge in Adani group shares, coupled with GQG Partners' substantial profits, marks a turning point in the ongoing saga involving the conglomerate. The Supreme Court's reserved order and the ongoing Sebi probe add layers of complexity to the situation. As the legal and regulatory aspects unfold, the market remains vigilant, closely monitoring developments that could influence the fate of one of India's most influential business groups.