Shares of ASX-listed GQG Partners (AU:GQG) fell sharply after the company decided to scrutinize its stake in India’s Adani Group amid bribery allegations. This move came as Adani Group’s chairman, Gautam Adani, was charged in a New York federal court over his alleged involvement in a $250 million bribery and fraud scheme. GQG Partners is among the major shareholders in the Adani Group. Following the reports, GQG stock plummeted by nearly 20% on Thursday.
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Based in Australia, GQG Partners is a specialized investment firm, led by NRI investor Rajiv Jain.
GQG Partners Reviews Adani Investments
According to the statement, GQG Partners is reviewing the charges filed against Gautam Adani and other executives, and to see if any further action is required for its portfolios.
The U.S. Attorney’s Office for the Eastern District of New York and the U.S. SEC (Securities and Exchange Commission) have accused Gautam Adani of being involved in a $250 million bribery scheme to secure solar energy contracts in India. Additionally, he faces charges of obstructing justice by erasing evidence and deceiving U.S. authorities.
As of the quarter ending on September 30, GQG Partners held stakes in six Adani Group companies, with each stake ranging from 1.5% to 2%. Meanwhile, GQG has seen significant gains from its investments in Adani following a report by New York’s Hindenburg Research, which accused Adani of fraud.
The company further highlighted that its portfolios are well-diversified, with over 90% of clients’ assets invested in companies unrelated to the Adani Group.
Is GQG Partners a Buy?
On TipRanks, GQG stock has been assigned a Moderate Buy rating based on two Buy recommendations. The GQG Partners share price target is AU$3.18, which is 49.3% above the current trading level.
