US-based global equity investment firm GQG Partners has increased its exposure to Adani Group by 10 per cent, making its overall holding worth $3.5 billion.

In an interview with Bloomberg, GQG’s Chief Investment Officer Rajiv Jain said, “Within five years, we would like to be one of the largest investors in Adani Group, and we would certainly want to be partners in any of Adani Group’s new offerings.”

Continuing rally

This comes even as the rally in Adani Group company stocks continued for the second day on Tuesday as investors gained confidence in the group getting SEBI approval for raising growth capital through equity issuance after the Supreme Court-appointed committee gave a favourable report on the allegations made by the US-based short seller Hindenburg Research.

All 10 Adani Group stocks jumped in the last three sessions, with most stocks hitting upper circuits on Monday and Tuesday. In the past three trading days, Adani Enterprises shares have jumped 39.49 per cent and are now only 22.2 per cent away from achieving their levels prior to Hindenburg report in late January 2023.

Adani Enterprises and Adani Transmission have approved plans to raise ₹12,500 crore and ₹8,500 crore, respectively, through qualified institutional placements. The Adani Green Energy Board will meet on May 24 to consider fund-raising options.

Though the group had prepaid margin-linked share-backed financing of $2.15 billion before the committed timeline, it was constrained for investment in expansion and put off new projects.

The recent run-up in Adani Group stocks is a sentimental reaction to the Supreme Court-appointed panel’s observation of no regulatory failure in Hindenburg’s allegations, said Manish Chowdhury, Head of Research, Stoxbox.

“Barring a handful of stocks, we are still not comfortable with the premium valuations of the group companies,” he added.

Thanks to the sharp rise in share price, the US-based boutique investment firm GQG Partners investment in Adani Group shares has jumped by ₹10,000 crore in less than three months.

Surging investments

In March, GQG Partners bought 38,701,168 Adani Enterprises shares at ₹1,411 a piece for ₹5,460 crore. Similarly, it acquired 88,600,000 shares of Adani Ports at ₹596 a piece for ₹5,282 crore, and value of this investment has surged to ₹6,964 crore.

GQG’s investments of ₹2,806 crore in Adani Green Energy and ₹1,898 crore in Adani Transmission have jumped to ₹5,502 crore and ₹2,461 crore, respectively.

Overall, an investment of ₹15,446 crore by GQG Partners’ on March 2 has rallied to ₹25,515 crore as of Tuesday.