The ASX-listed GQG Partners, founded by NRI investor Rajiv Jain, saw a significant recovery on Friday, rising as much as 15.5% to an intraday high of AUD 2.46. This rebound occurred one day after the stock dropped 19.3% in response to U.S. bribery accusations against Adani Group executives, including Gautam Adani.
Gautam Adani, his nephew Sagar Adani, and others were accused by the SEC and US prosecutors on Thursday of conspiracy and securities fraud in connection with their renewable energy company. Adani Group stocks saw a steep sell-off as a result of the allegations, with 11 companies losing up to 23% of their value.
Adani Green Energy plummeted 19%, Adani Enterprises lost 23%, and Adani Energy Solutions sank 20%. The decreases in other category stocks ranged from 7% to 14%.
A major shareholder in Adani Group equities, Jain’s GQG Partners, acknowledged the claims in a statement and said it is looking into the situation.
‘We are monitoring the charges brought by the U.S. Attorney’s Office and the SEC against Gautam Adani and other Adani Group executives. Our team is assessing the details and determining any appropriate actions for our portfolios,’ GQG stated.
In keeping with its portfolio diversification policy, the firm stressed that more than 90% of its clients’ assets are placed in businesses unaffiliated with the Adani Group.
GQG owns shares in the majority of the key Adani Group firms through its various funds. GQG raised its ownership of at least four Adani Group entities during the September quarter.
As Team Jain acquired 5,511,064 shares of Adani Energy Solutions, GQG’s ownership of the company increased from 4.57% in Q1 to 4.7% in Q2.
In Q2, GQG’s ownership of Adani Enterprises grew from 3.4% to 3.52%. The promoter’s ownership increased by a small 17 basis point during the quarter, from 74.72% to 74.89%.
As a result of GQG’s acquisition of 864,849 shares of Adani Green Energy during the quarter, the company’s shareholding grew by 5 basis points to 4.21%.
Additionally, every quarter, GQG increased its ownership of Ambuja Cements from 1.35% to 2.05%. However, GQG sold 149,932 shares of Adani Ports and 538,990 shares of Adani Power, resulting in a small reduction in their respective stakes.
In the meantime, a spokesperson for Adani Group denied all the allegations and termed them “baseless.”
“As stated by the US Department of Justice itself, “the charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought,” Adani Group said.
“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency, and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners, and employees that we are a law-abiding organisation, fully compliant with all laws,” it added.
