US-based investment firm GQG Partners sought to assuage investor concerns, even as its share price tumbled as much as 25 percent following the US prosecutors and US SEC charges against Gautam Adani and other Adani Group executives. Rajiv Jain’s GQG Partners is a significant investor in Adani group stocks.
GQG stock fell to an intraday low of AUD 1.96 on the Australian Securities Exchange, down 25 percent on Thursday, 21 November, after US federal courts pressed charges of bribery against Gautam Adani and several others. It ended at AUD 2.13, down 20 percent.
The Attorney's Office for the Eastern District of New York and the US Securities and Exchange Commission have alleged that Gautam Adani was involved in a $250 million bribery scheme to secure solar energy contracts in India. He is also accused of obstructing justice by deleting evidence and misleading US authorities.
Also read | Adani scraps $600 million bond, other notes drop on US charges
GQG said it is closely monitoring the developments and reviewing its portfolio exposure to the Adani Group to determine if any actions are necessary. The investment firm said that over 90 percent of its clients' assets are invested in issuers unrelated to the Adani Group, ensuring a diversified portfolio.
The boutique investment firm, which manages $159.4 billion as of October 2024, has been a key investor in Adani stocks post-Hindenburg Research’s allegations earlier this year. Its investments in Adani Group companies, including Adani Ports, Adani Green Energy, and Adani Enterprises, began with a ~Rs 15,446 crore infusion in March 2023 and have since grown to nearly Rs 80,000 crore.
The charges against Adani have already triggered a steep sell-off in the group’s dollar bonds, adding to the fallout.
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