Adani bull GQG hikes stake in GMR Airports to over 5%

US-based boutique investment firm GQG Partners, best known on Dalal Street as an Adani bull, has increased the stake in GMR Airports Infra from 4.74% to 5.17% last week.

“Now, on August 23, 2024, the Acquirer and PACs (persons acting in concert) acquired further shares of the Company, resulting in their shareholding crossing 5% of the share capital of the Company,” GMR said in a regulatory filing.

GQG had a 7.66% stake in GMR in 2023-end but due to corporate actions in July this year, the shareholding reduced below 5% of the paid-up capital of the company.

GMR shares, which have outperformed with a 58% return in the last year, were trading marginally higher at Rs 96 on BSE.

Also read | How Adani bull Rajiv Jain’s GQG reshuffled 13-stock portfolio in election seasonLast month, Jefferies’ global equity strategist Chris Wood also added GMR Airports to its India portfolio.Jefferies on May 26 had initiated coverage on the stock with a buy and a price target of Rs 100. GMR operates airports in New Delhi and Hyderabad – two of the busiest in India.”GMR Airport is evolving from utility to a retail consumption play and is slated to benefit from the strong air traffic growth outlook, travel retail opportunity (led by top-end consumption), upward reset in Aero tariffs and real estate unlocking opportunity,” said Jefferies’ note late in May.

GQG Portfolio
At the end of the June quarter, NRI investor Rajiv Jain-led GQG Partners raised stakes in 3 Adani stocks – Adani Energy, Adani Enterprises, and Adani Ports – and its biggest India bet ITC. The institutional investor, on the other hand, was seen paring stakes in IDFC First Bank and Patanjali Foods in Q1 of FY24.

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While GQG’s largest bet is Adani stocks as a conglomerate, its single largest bet remains ITC, the shares of which recently crossed the Rs 500 mark after Budget didn’t see any hike on cigarette tax.