© Reuters. File photo: Indian billionaire Gautam Adani’s speech at the inauguration ceremony after Adani Group completed his January 2023 purchase of Haifa Port, Haifa Port, Israel, January 31, 2023 to hold. REUTERS/Amir Cohen/File Photo
Scott Murdoch
SYDNEY (Reuters) – The Australian-listed shares of international investment firm GQG Partners Inc fell as much as 3% on Friday. This comes after an international investment firm put $1.87 billion into four companies under struggling Indian conglomerate Adani Group.
The Florida-based company has a 3.4% stake in Adani Enterprises Ltd for approximately $662 million, a 4.1% stake in Adani Ports and Special Economic Zone Ltd for $640 million and a 2.5% stake in Adani Transmission Ltd for $200 million. $30 million, 3.5% of Adani Green Energy Ltd for $340 million, indicated Adani’s regulatory filings.
By early afternoon, GQG shares were down 3% while the S&P/ASX200 benchmark index was up 0.4%.
GQG’s move represents the first major investment in Adani Group after critical short-seller reports on the conglomerate at the end of January sparked a stock crash.
Adani’s seven publicly traded companies have lost around $135 billion in market value since Hindenburg Research accused the group of improper use of offshore tax havens and stock manipulation on Jan. 24.
The group, led by billionaire Gautam Adani, denied the allegations.
Rajiv Jain, chairman and chief investment officer of GQG, told Reuters that Australian-listed GQG had “deeply infiltrated” Adani on its own and disagreed with Hindengurg’s report.
“Based on Rajiv Jain’s past comments, he is the type of investor who will invest wherever there is unrealized value,” said Morningstar analyst Shaun Ler, GQG Partners. rice field.
“He does not explicitly run an ESG fund and, importantly, his investors are fully aware of it.” ESG stands for Environmental, Social and Governance.
“Some people will avoid buying GQG because of Rajiv’s decision, and others will want to invest in them given their good performance.”
GQG’s stock is up 3.58% so far this year, in line with the ASX200.