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Florida-centered financial commitment team GQG Associates has purchased a 6 per cent stake worthy of an estimated $290mn in an Indian foodstuff business fronted by controversial yoga televangelist Baba Ramdev.

The financial commitment in Patanjali Foodstuff marks a even further bet on India by GQG, which in March invested pretty much $2bn in the embattled conglomerate of infrastructure tycoon Gautam Adani.

Ramdev, whose yoga channel is viewed by tens of millions, is the face of Patanjali and a non-executive director. He has in the previous campaigned for India’s key minister Narendra Modi and also courted controversy by describing modern day drugs as a “stupid bankrupt science” through the coronavirus pandemic.

In a submitting to Indian stock exchanges on Monday, GQG reported it experienced obtained 21.5mn shares in Patanjali, 5.96 per cent of overall shares of the biscuits-to-edible oils seller.

GQG did not disclose how substantially it paid for the stake, but the clearing value for specialist bidders was Rs1,103.8 for every share, in accordance to the BSE inventory trade. This would advise GQG compensated close to Rs23.8bn ($290mn).

GQG is betting heavily on India’s economic development. In a website posted on its web-site in June, GQG praised Modi for creating enterprise-helpful reforms and “following the playbook” of globe leaders together with Margaret Thatcher, Ronald Reagan, and Lee Kuan Yew of Singapore.

GQG’s founder and chief investment officer, Rajiv Jain, was the very first main investor to bet on the Adani Team following US shorter vendor Hindenburg Investigation hit the conglomerate with a limited marketing assault in January this yr.

Hindenburg, in January, revealed a report alleging share cost manipulation and accounting fraud — accusations Adani strongly denied. The report wiped about $150bn off the current market benefit of outlined Adani Group companies at their lowest level.

Opposition politicians have accused Adani and Modi of owning a near partnership, dating again to Modi’s time as chief minister of Gujarat, wherever Adani’s organizations are primarily based. Adani has very long denied any inappropriate one-way links with the premier.

The sale of the Patanjali stake permits the meals corporation to meet Indian securities policies that call for at the very least 25 per cent of a outlined company’s shares to be held by outside the house investors.

Patanjali provided shares for sale past 7 days to lower its very own keeping from additional than 80 for each cent to 75 per cent of shares. It had been courting traders, and done investor presentations in New York, Chicago and Boston very last thirty day period.

The Patanjali deal reveals a deepening enterprise marriage in India involving GQG and US investment decision bank Jefferies Economic Team, which acted as brokers for Patanjali Foodstuff in the sale alongside with IIFL Securities. Jefferies also released GQG to Adani.

GQG and Jefferies did not instantly respond to requests for comment.