Rajiv Jain, CEO earned crores by buying Adani stocks
We all know how the Adani stocks tanked after the Hindenburg debacle. But Rajiv Jain, CEO of GQG Partners, saw an opportunity here and made a huge profit from this dipping stock.
So, who is Rajiv Jain?
Rajiv Jain is the CEO of GQG Partners, a registered investment adviser with the U.S. Securities and Exchange Commission.
An Indian-born financial expert, he founded the company in 2016 and has more than 23 years of experience in investment. Before he started his own venture, he worked in Vontobel Asset Management for 21 years and was the Co-Chief Executive Officer and Chief Investment Officer and head of Equities.
In a recent interview with The Australian Financial Review, Jain spoke about the Adani companies and expressed his belief in the company. Sighting the Hindenburg report, which alleged the entire Adani business as a con, Jain said “They have their view, and we have our view, and we happen to disagree with their view, but that’s what makes a market.”
He also mentioned how the Adani stocks such as Adani Port and Adani Green Energy, are “fantastic” and owing to the recent dip, they are available at a good price.
He added, “Adani Green Energy is by far the fastest and the largest private sector, a green energy company in India. They’re rolling out almost three gigawatts annually. So, I think some of their assets are fantastic.”
How did his company earn crores from the Adani stock dip?
The simple logic of buying the dips of a company you believe in is what helped Rajiv Jain make crores from the recent dip in the Adani stocks. GQG Partners invested Rs 15,556 crores in four Adani companies namely Adani Enterprises, Adani Ports and SEZ, Adani Transmission, and Adani Green Energy. This investment saw an increase of 20% in just the next two days of his purchase as the stock prices went up.
After the report had been made public, Adani has been trying to repay their loans. Post the investment by GQG partners, a huge chunk of the loan was paid back. It is alleged that the repayment of the loans has come from investments.
Mahua Mitra, MP from West Bengal tweets-
As expected. GQG deal to pay margin calls on pledged shares. Out of ₹15000 crores almost half gone in payments. pic.twitter.com/OlIktylDiN
— Mahua Moitra (@MahuaMoitra) March 8, 2023
Adani’s GQG deal – ₹15,000 crore block stock sale- seems more like desperate margin call funding. FPO investors who were ready to buy at ₹3200 didn’t participate at ₹1400! Daal me kuch kala hai!
— Mahua Moitra (@MahuaMoitra) March 3, 2023
In the latest development, the Adani Group had also increased their shares pledged in two companies- Adani Green Energy and Adani Transmission. These new pledges increased the total pledges to 2% in Adani Green Energy and 1.32% in Adani Transmission. This was again questioned by Moitra, who tweeted-
How can all Adani share backed loans be paid off and then fresh share pledges are created in 2 Adani entities a few hours later. Classic deception. Too much bhang to digest. Or is it all okay for @SEBI_India ? pic.twitter.com/xMEyCnsfIX
— Mahua Moitra (@MahuaMoitra) March 9, 2023
The Positive Outlook
Rajiv Jain also said that ‘crisis creates opportunities’ and is positive that they will increase their stakes even more and buy more Adani stocks in the future.
The slow rise of Adani stocks which have been closing in the green since the past few trading sessions has given the investors some confidence and many are looking to invest in the stocks again. In the meanwhile, the Supreme Court has also set a panel to probe into the allegation made against the billionaire Gautam Adani and his company.
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