GQG founder Jain to meet Australian investors after $1.9 bn Adani investment

GQG Partners Inc founder Rajiv Jain will meet clients and investors in Australia this week, the company said in a statement on Tuesday, and will explain its investment into embattled Indian Adani Group.

GQG Partners bought shares worth Rs 15.2 thousand crore ($1.87 billion) in four Adani group companies, marking the first major investment in the Indian conglomerate since a short-seller's critical report sparked a stock rout.

A January report by US-based Hindenburg Research alleged stock manipulation and improper use of tax havens by Adani, and flagged concerns over debt levels.

Adani has rejected the allegations and denied any wrongdoing.

Read | Adani in advanced talks to acquire Holcim India Units

The stake purchase has raised queries from an Australian pension fund client of GQG, at a time when major investors, including Norway's sovereign wealth fund, were selling the stock.

Jain is meeting some of GQG's clients in person while doing conference calls with others, sources told Reuters who could not be named discussion private information.

"Rajiv Jain is visiting Australia this week to meet with investors. The trip was planned well in advance of the Adani purchase," the statement to Reuters said.

"It's also an opportunity to respond to any questions they have about the business including the Adani investment."

It is Jain's first visit to Australia since the company listed on the ASX in 2021, the statement said.

GQG bought 3.4 per cent of Adani Enterprises Ltd for about Rs 5.4 thousand crore ($662 million), 4.1 per cent of Adani Ports and Special Economic Zone Ltd for Rs 5.3 thousand crore ($640 million), 2.5 per cent of Adani Transmission Ltd for Rs 1.8 thousand crore ($230 million) and 3.5 per cent of Adani Green Energy Ltd for Rs 2.7 thousand crore ($340 million).

($1= Rs 81.77)