Having doubled down its bet on Adani Group stocks in the past few months, GQG Partners has seen the market value of its investments soaring, thanks to the rally in the stocks.
The sharp upmove in shares of most of the Adani Group companies since April has taken the total market value of GQG Partners’ investment to nearly Rs 25,000 crore.
Based on the shareholding data available on the stock exchanges and the disclosures, the global investment firm, owned by NRI investor Rajiv Jain, cumulatively holds around 16% stake in 5 Adani Group companies.
The market value of this stake was calculated based on Wednesday’s closing price of the shares.
After making a contra bet in late March by investing about $1.9 billion in Adani Group stocks, GQG Partners did not stop there.
The investment firm bought stocks worth about $500 million in May, and then another $1 billion in June. These investments aided the rally in the stocks.
Besides GQG’s investments, steady buying by mutual funds and retail investors also supported the stocks.
Mutual funds increased their stakes in 7 out of 10 listed Adani Group companies in the quarter ended June, and retail investors did that in five.
Within the group, Adani Enterprises has given the best returns since April, rallying more than 41%. In Adani Enterprises, mutual fund holding went up to 1.18% in the June quarter, from 0.87% in the March quarter.
Meanwhile, strong earnings and upbeat growth outlook aided the upside in Adani Ports stock, which has given 19% returns so far in the current financial year.
In the last two sessions alone, stocks have seen a sharp run which has resulted in market value rising by Rs 57,000 crore. As of Wednesday, the group’s market value reached Rs 10.7 lakh crore.
Whether the current run in the stocks is sustainable is anybody’s guess, but market participants continue to advise caution while trading in the group stocks, given that the concerns surrounding the Hindenburg report is not yet done.
In August, the SEBI is expected to submit its final report on the investigations into Adani Group stocks.
(Data inputs from Ritesh Presswala)
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