The Adani Group continues to struggle to overcome the heavy impact of the Hindenburg Report. Indian-American businessman Rajeev Jain is in the news for making a profit of crores in two days by putting money in Adani Group despite the Hindenburg Report coming out in the stock market and making losses in the case of Adani Group. Rajiv’s Australian company GQG Partners invested Rs 15,446 crore in Adani’s four major stakes. Moreover, the company made a profit of 20 percent of the launch, i.e. Rs 3,100 crore, in two days. With this, there was a huge jump in the price of Adani shares. This has given great confidence to those who have invested in Adani companies.
However, Rajiv Jain says with his new moves that he is not ready to end here either. Rajiv Jain is keen to invest more in Adani shares. Rajiv Jain says that the good response from investments motivates him to invest more. The investment made now is just a preliminary move. The response from it is important. If the response continues to be good then full-scale investment programs will be undertaken.
Rajiv Jain’s GQG Partners generally has a long-term holding policy. One of the reasons for Jain’s trust in Adani is because of the business areas he is involved in. Even if they get tired, they are less likely to break. According to Jain himself, if Adani’s shares fall rapidly, the fall will stop at the same pace.
And Rajiv Jain’s company’s approach is generally similar. After the 2004 elections, the market fell by around 20 percent. In this context the company owns several shares. GQG bought the shares of ITC in 1996 and held them for twenty years. At that time, ITC shares were facing a downfall due to some tax issues. One approach of GQG is not to buy shares of companies facing a market downturn and maximize profit, but to help the company by holding those shares for a long period of time. This is a factor that enhances the credibility of the company.
In an interview, Rajiv Jain indicated that his investment was based on the recognition of Adani’s importance. India needs someone to implement its new infrastructure needs. Adani is doing it well. Jain can get no greater assurance than this that Adani will not fall any time soon.
Rajiv Jain’s company invested in four stocks namely Adani Enterprises, Adani Ports, Adani Green Energy and Adani Transmission. With this, small investors also came forward to invest in Adani shares in the stock market. Jain bought shares of Adani Enterprises for Rs 1,410.86 in a block deal. Since then, the share price has risen 33%, giving him a profit of Rs 1,813 crore on the Nifty stock. Similarly, Adani Ports was bought at Rs 596.2, Adani Green Energy at Rs 504.6 and Adani Transmission at Rs 668.4. However, Jain’s move has given the Adani Group a new impetus.
Jain reckons that there is no other opportunity like this to buy the best assets at attractive prices. Jain told The Australian Financial Review that his team had been monitoring Adani companies for the past five years and realized that airport, port and energy assets owned by Adani companies were good and bought them when they were available at good prices. And the Hindenburg will have their vision, and we will have ours. We disagree with their view. Jain added that all this is natural in a market and this is what sustains a market. To put it a little more simply, crisis creates opportunities, Jain said. 
No more Kifby’s money; What does the center promote?Jain also said that they would not take up a business if they were not sure how it would fare after five years. Therefore, Jain stated in an interview to Economic Times that this will be a long-term business. GQG Company has high hopes for Adani Green Energy. Also, Jain says GQG has invested in fossil fuels before and the key is to maximize returns within constraints. In a statement to Reuters explaining the rationale behind the Adani deal, Jain said they believe the long-term growth potential of these companies is substantial. He also mentioned that investments are made in companies that help advance India’s economy and energy infrastructure. Or these are the areas where the risk of collapse is very low.
Jain bought the shares directly from the Adani family and not others’ shares from the Adani family trust. GQG notes that these types of secondary purchases can be more beneficial. ‘Timing’ is very important in such situations. Stocks become less attractive as time goes on, he added. In other words, GQG states that the shares were bought when the time was right. When asked about GQG’s investment plan for the Adani Group, Jain replied that the company has $5 billion invested in various utility-type businesses globally. 
Not just smoke; What is PM 2.5? Particles from Brahmapuram reach the inside of the lungsMoreover, many people do not understand how to play this game from the utility side in the problem of Adani Group. An example he cites is Adani Group’s Debt-Ebita ratio. (debt to Ebitda ratio). He pointed out that for most Adani group companies this debt ratio is around three times, but for US utilities it is an average of 6-6.5 times. So this figure is acceptable in regulated utility businesses, says Jain. (Debt/EBITDA is a measure of a company’s ability to pay its debts. A higher ratio indicates that a company is very heavily indebted. )
We have seen earlier that Jain has made such moves in the stock market before. Born and brought up in India, Jain came to the US to pursue an MBA. GQG was established in 2016. Currently its Chairman and Chief Investment Officer. Last month, Morningstar Australia named his firm ‘Fund Manager of the Year – Global Equities’. Jain is well known for his knowledge of buying equities and tracking such opportunities.
