Rajeev Jain, founder and chief investment officer of GQG Partners, during an interview on Tuesday, April 4, 2023 in New York, US.
Christopher Gidney | Bloomberg | Getty Images
Shares in Australia-listed GQG Partners fell as much as 25 percent on Thursday and were poised to post their worst day on record after Adani Group Chairman Gautam Adani was charged with fraud in New York.
If the loss holds, it would be the investment firm’s fastest one-day decline since its listing in October 2021.
Shares of Adani group companies also fell, as the Indian stock market opened for trading. gave Nifty 50 The index was down 0.75 percent, while the BSE Sensex was down 0.73 percent.
According to LSEG data, GQG is Adani Enterprises’ fourth-largest shareholder, owning about 3.94 percent of the firm.
In a statement sent to CNBC, GQG said it was monitoring the allegations, adding that “our team is reviewing the emerging details and determining what to do for our departments.” Measures are appropriate, if any.”
The investment firm also pointed out that it has “diversified investments” in its portfolio, saying that more than 90% of clients’ assets are invested in issuers unrelated to the Adani group.
GQG has reaped rich rewards from investing in Adani, whose shares fell in January 2023 following a short-seller report from New York. Hindenburg Research Accused the company of fraud.
Rajeev Jain, chairman and chief investment officer of GQG Partners, told CNBC in January this year that his profit on Adani was about $4 billion, but it is likely that he invested in the group.
Hindenburg had accused the Adani group of a “decade-long stock manipulation and accounting fraud scheme”, which sent shares plunging more than 54 per cent in the first quarter of 2023.
