© Reuters. FILE PHOTO: Indian billionaire Gautam Adani speaks during a groundbreaking ceremony after the Adani Group completed the purchase of the Port of Haifa in early January 2023, at the Port of Haifa, Israel, January 31, 2023. REUTERS/Amir Cohen/File Photo
by Scott Murdoch
SYDNEY (Reuters) – Australian-listed GQG Partners Inc shares fell as much as 3% on Friday after the international investment firm pumped $1.87 billion into four companies in embattled Indian conglomerate Adani Group.
The Florida-based firm bought 3.4% of Adani Enterprises Ltd for about $662 million, 4.1% of Adani Ports and Special Economic Zone Ltd for $640 million, 2.5% of Adani Transmission Ltd for $230 million and 3.5% of Adani Green Energy Ltd for $640 million. $340 million, a regulatory filing by Adani showed.
By midafternoon, GQG shares were down 2.6%, while the benchmark S&P/ASX200 index was up 0.42%.
GQG’s move represents the first major investment in the Adani Group since a short seller’s critical report on the conglomerate triggered a drop in inventories.
Adani’s seven publicly traded companies have lost some $135 billion in market value since Jan. 24, when Hindenburg Research accused the group of misusing offshore tax havens and stock manipulation.
The group, led by billionaire Gautam Adani, denied the allegations.
GQG Chairman and Chief Investment Officer Rajiv Jain told Reuters the Australian-listed firm had carried out its own “deep dive” into Adani and disagreed with Hindengurg’s report.
“Based on earlier comments by Rajiv Jain, he is the type of investor who goes wherever there is unrealized value,” said Shaun Ler, an analyst at Morningstar, which covers GQG Partners.
“He doesn’t explicitly run an ESG fund and, more importantly, his investors know that very well,” he said, referring to GQG’s purchase of Adani, which has significant coal assets. ESG stands for Environmental, Social and Governance.
“There will be people who avoid buying GQG because of Rajiv’s decisions, there will also be those who want to invest with them given their good performance.”
GQG shares are up 3.58% year to date, which is in line with the ASX200.
Jain is the founder, chairman and chief investment officer of GQG. He also serves as a portfolio manager for all of his strategies, his profile on the GQG website showed.
GQG listed on the Australian Stock Exchange in October 2021, raising A$1.18 billion ($794.97 million), making it Australia’s largest listing of the year. Jain retains a 68.8% stake.
