Shares of Australia-listed fund manager GQG Partners nosedived 20% on Thursday, November 21, after media reports indicated the firm was reviewing its investments in India’s Adani Group.
This comes in the wake of US prosecutors charging Adani Group’s chairman Gautam Adani and 7 others in connection with an alleged $250 million bribery and fraud scheme.
Sharp Decline in GQG Stock Price
GQG Partners’ stock price plummeted as much as 23.1%, reaching a low of AUD 2.03, its lowest point since mid-March. The stock was last down by approximately 22%, marking its worst trading day on record.
Also ReadAdani group stocks slide 20% after US prosecutors indict Gautam Adani, 7 others in alleged $250 million bribery scheme
The Australian investment firm, which holds significant stakes in several Adani Group companies, has been under scrutiny following the legal charges against Gautam Adani.
GQG Partners’ Exposure to Adani Group
According to LSEG data, GQG Partners holds a combined stake of 19.37% in multiple Adani Group companies, including Adani Enterprises, Adani Power, Adani Green Energy, and Adani Energy Solutions. The firm’s exposure to these companies has raised concerns, prompting a review of its investment strategy.
GQG Partners Issues Statement on Review of Investments
In response to the unfolding situation, GQG Partners issued a statement saying it was closely monitoring the developments and reviewing its portfolio exposure to the Adani Group. “Our team is reviewing the emerging details and determining what, if any, actions for our portfolios are appropriate,” the firm stated.
US Charges Against Gautam Adani and Other Defendants
The crisis escalated when US authorities charged Gautam Adani and seven other individuals in connection with an alleged multibillion-dollar bribery and fraud scheme.
Also ReadAdani Group scraps $600 million bond deal on alleged bribery and fraud scheme
According to US prosecutors, Adani and his associates, including his nephew Sagar Adani, allegedly agreed to pay $265 million in bribes to Indian government officials in order to secure contracts expected to yield around $2 billion in profits over the next 20 years. This scheme reportedly also involved the development of India’s largest solar power plant project.
Adani Group Stocks Suffer Steep Losses
The charges against Gautam Adani caused a significant downturn in Adani Group stocks,
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