GQG Partners LLC’s stake in Adani Group companies has surged nearly fivefold, as the stocks continue to rebound from Hindenburg Research’s critical report.
From its initial investment of $1.9 billion in March, the stake has grown to a value of $10 billion, aided by market gains and additional stakes, according to fund manager Sudarshan Murthy. This represents a significant success for the contrarian bet made by Rajiv Jain’s firm, despite Hindenburg’s accusations of stock-price manipulation and accounting fraud against the Adani Group — allegations that the conglomerate has vehemently denied.
The Gautam Adani-led group has reclaimed over two-thirds of the market capitalization it lost following the report, bolstered by investor and banker confidence. India’s highest court has also dismissed calls for a high-level investigation into Hindenburg’s claims.
“Adani Power, as the country’s largest private thermal power producer, has the potential to double its capacity by 2029,” Murthy noted. Additionally, Adani Green Energy Ltd. has secured land for future development, providing a clear path for growth over the next five years.
The GQG Partners Emerging Markets Equity Fund holds approximately $2.23 billion in seven Adani companies, with $1.06 billion allocated to Adani’s energy and utility firms.
