Adani stocks: NRI investor Rajiv Jain makes Rs 3,100 crore profit in 2 days

The market value of Jain’s investment in 4 Adani stocks – Adani Enterprises, Adani Ports and Special Economic Zone, Adani Green Energy, and Adani Transmission – has gone up to Rs 18,548 crore. This translates into a notional profit of Rs 3,102 crore.

Following a month-long rout in Adani stocks in the aftermath of a damaging report by Hindenburg Research, the $92 billion fund GQG Partners had bought stakes in four companies owned by billionaire Gautam Adani saying that the long-term growth prospects for these companies are substantial.

Jain bought shares of Adani Enterprises at a price of Rs 1,410.86 on Thursday in the block deal. Since then, the stock price has gone up 33%, giving him a profit of Rs 1,813 crore on the Nifty stock.

Similarly, Adani Ports was bought at a price of Rs 596.2, Adani Green Energy at Rs 504.6 and Adani Transmission at Rs 668.4.

In the deal, the apples-to-airport conglomerate’s promoter entity SB Adani Family Trust sold a part of its stake to generate cash which is likely to be used to clear some of the debts in its books.

Jain said the stock crash has allowed him to snap up “fantastic assets” at an attractive price. While describing the airport, port and energy assets owned by the Adani companies as “fantastic,” “irreplaceable” and available at a good price, he told The Australian Financial Review that his team had been following Adani companies closely for five years but the valuations were in no man’s territory.

“Hindenburg has their view, and we have our view, and we happen to disagree with their view, but that’s what makes a market,” Jain said.

Since late January, the combined market value of 10 Adani stocks has more than halved with a total loss of over Rs 10.65 lakh crore. In the last four days, however, Adani stocks have been on a gaining spree amid newsflow around the GQG deal and prepayment of loans by the conglomerate. The investment also leads to a belief that Adani stocks have stabilized and can raise capital if they want at current prices.

“The promoters can use the money raised through the transaction to infuse capital in any group company requiring the funds through warrants, rights issues, or any other instrument. This development will also lead to better sentiments for the market and increase retail participation, which was down due to uncertainty,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS.

(With data inputs from Ritesh Presswala)

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