US-based investment firm GQG has ploughed $1.9bn into four Adani group companies, in a boost for infrastructure tycoon Gautam Adani after his conglomerate was hit by a short seller attack five weeks ago.
GQG Partners, which is listed in Australia, bought $1.87bn of Adani stock in secondary market trades, Adani said on Thursday.
Shares in the group’s companies had nosedived following a report by New York-based short seller Hindenburg Research which alleged accounting fraud and stock manipulation by the group. Adani strongly denied the accusations but the ensuing stock market rout wiped $145bn from the group’s collective market value.
GQG Partners’ chair and chief investment officer Rajiv Jain said he was “excited to have initiated positions in the Adani companies.
“We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India’s economy and energy infrastructure,” he added.
The asset manager bought shares worth $660mn in the group’s flagship company Adani Enterprises, $640mn in Adani Ports and Special Economic Zone, $230mn in electricity unit Adani Transmission, and $340mn in renewables business Adani Green Energy.
GQG had a total of $92bn under management in January this year.
Adani Group’s chief financial officer Jugeshinder “Robbie” Singh said the transaction made GQG a “strategic investor”.
The group’s other major foreign backers include French energy major TotalEnergies, Abu Dhabi conglomerate International Holding Companies, and Qatar’s sovereign wealth fund.