GQG Partners likely to step up investment in Adani group, says founder

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GQG Partners would likely expand its investment in the Adani group, the fund firm's founder Rajiv Jain said on Wednesday, a week after its $1.9 billion infusion into the embattled Indian conglomerate.

A GQG spokesperson said Jain's trip had been planned for some time and the discussions included topics other than Adani.

"The response actually has been, frankly, more positive than I would have anticipated because they feel that's how we differentiate ourselves," Jain said, when asked how the clients have responded to the Adani deal.Jain said he has not had a conversation with the Adani group since the transaction because "there is nothing to talk about".

"We feel that we got an incredible opportunity to initiate positions and over time, the size will increase and most likely will increase depending on the price and how they deliver...," he said.New York-based short-seller Hindenburg Research accused the Adani group in a Jan. 24 report of stock manipulation and improper use of offshore tax havens that it said obscured the extent of Adani family stock ownership in group firms. The group has denied the charges.

The allegations resulted in seven of the Indian group's listed firms losing about $130 billion in market value, and the group also shelved a $2.5 billion share sale. Adani has major coal assets, which could affect the environmental, social and governance targets of superannuation and other Australian investors."It's a more convenient issue rather than a substantive issue. A lot of people simply do box checking exercise. We feel that you need to make the transition, but the transition has to be based on some realistic aspects," he said.

 

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Even when FED likely raises rates , Indian stock market will not fall, going by the trend.

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