Adani investments are remarkably good assets run by competent promoter, says Rajiv Jain of GQG Partners

GQG Parnters founder Rajiv Jain believes his investors were not likely to have been surprised by their investment in the Adani group companies, as he felt that these investments were remarkably good assets run by a competent promoter.

Asserting that they had done their own due diligence in order to allay investor concerns, Jain said he didn’t feel that Adani is a very risky bet.

“We look at where these businesses are going to be in five years. We look at PEs 4-5 years down the line,” Jain said in an interview with CNBC-TV18.

Our job is to worry about everything. Question is what is the risk-reward value. We do our own due diligence. We did speak to some former regulators as part of our due diligence, he said, adding that the bankers they talked never mentioned "fraud".

Jain noted that the execution in Adani’s infrastructure projects were quite big, and importantly, their maintenance capex was very low. He underlined that they were looking at how these assets would do in five years.

He also said that they had met some of the management of Adani group through brokerage firm Jefferies.

"I believe they (Adani group) need to keep growing; it will be a mistake to stop growing. I would say, 'don’t change anything to please the market'," Jain said.

Stating that GQG Partners have historically owned very high multiple stocks, he said that many of the allegations made in the Hindenburg report are not substantive.

“Lot of the allegations being made are totally fluff,” he said. “The Hindenburg report, if you go through the allegations, verify one by one, — the problem is that people are not doing that — the vast majority are not substantive,” Rajiv Jain said.

 Controversy is how you get better returns: GQG’s Rajiv Jain on Adani investments