Rajiv Jain calls Rs 15,000 cr investment in Adani opportunity in crisis, after profiting from 12% rally

Rajiv Jain calls Rs 15,000 cr investment in Adani opportunity in crisis, after profiting from 12% rally

Rajiv Jain reiterated that airports and ports owned by Adani were fantastic and irreplaceable assets, with stocks available at a good price.

FPJ Web DeskUpdated: Monday, March 06, 2023, 05:31 PM IST
article-image

The month that followed the allegations made in the Hindenburg Research report, dragged down the Adani Group's market value by $140 billion. But a $2 billion investmnet from US-based GQG Partners run by Rajiv Jain, has given the conglomerate reason to celebrate. The positivity changed investor sentiment as well, triggering a surge in Adani's stocks for five straight sessions.

New investor benefits from crisis

With a jump of as much as 12 per cent, Adani stocks also helped the Indian markets bounce back. Its new investor Jain also made a Rs 3,100 crore profit in two days thanks to the rally, and called his bet on Adani an opportunity in crisis. He further reiterated that airports and ports owned by Adani were fantastic and irreplaceable assets, with stocks available at a good price.

Finding validation

Although there were concerns about LIC's exposure to the port to power conglomerate, its chairperson MR Kumar's confidence in Adani's business prospects, also brought back investors. The firm, which still has a project with France's TotalEnergies on hold, has bagged two mining projects recently. During a visit to India, former Australian PM Tony Abott also spoke in support of Adani and praised his investments abroad.

Concerns remain

On the other hand, ratings agency ICRA has downgraded the outlook on Adani Ports from stable to negative, citing its lack of financial flexibility as a reason. Former RBI Governor Raghuram Rajan has also raised questions about SEBI's reluctance to investigate Mauritius-based funds named in the Hindenburg report.

RECENT STORIES

'From Shop Floor To Success,' Anand Mahindra Backs Elon Musk's Call For Recognition Of Manufacturing...

'From Shop Floor To Success,' Anand Mahindra Backs Elon Musk's Call For Recognition Of Manufacturing...

Bank Of India Faces ₹564 Crore Penalty From Income Tax Department; Yes Bank Also Hit With ₹113...

Bank Of India Faces ₹564 Crore Penalty From Income Tax Department; Yes Bank Also Hit With ₹113...

The Impact Of AI On Psychometric Testing

The Impact Of AI On Psychometric Testing

Shapoorji Pallonji Group's Afcons Infrastructure Files Draft Red Herring Prospectus For ₹7,000 Cr...

Shapoorji Pallonji Group's Afcons Infrastructure Files Draft Red Herring Prospectus For ₹7,000 Cr...

ICICI Securities' Retail Distribution Head Quits; Exchange Filing Reveals

ICICI Securities' Retail Distribution Head Quits; Exchange Filing Reveals