Rajiv Jain, founder and chief investment officer of GQG Partners, during an interview in New York, USA, Tuesday, April 4, 2023.
Christopher Goodney | Bloomberg Getty Images
Shares of Australian-listed GQG Partners tumbled on Thursday to post their worst day on record, after Adani Group Chairman Gautam Adani was charged with fraud in New York.
Shares, which fell as much as 25%, pared some losses to close 19.32%, still marking the investment company’s steepest one-day drop since listing in October 2021.
Shares of Adani Group also nosedived, as the Indian stock market opened for trading. At Good 50 index fell 0.75%, while the BSE Sensex was 0.73% lower.
GQG is the fourth largest shareholder of Adani Enterprises, owning around 3.94% of the company, according to LSEG data.
In a statement sent to CNBC, GQG said it was monitoring the charges, adding that “our team is reviewing the details that emerge and determining what, if any, action for our portfolio is appropriate.”
The investment firm also stated that its portfolio has “diversified investments,” saying that more than 90% of its client assets are invested in issuers that are not affiliated with the Adani Group.
GQG has reaped the rewards of its investment in Adani whose shares fell after a short-selling report in January 2023 by New York’s Hindenburg Research accused the company of fraud.
Rajiv Jain, chairman and chief investment officer at GQG Partners, told CNBC in January this year that Adani’s profits were about $4 billion, but he had finished investing in the group.
Hindenburg has accused Adani Group of “brazen stock manipulation and accounting fraud schemes for decades,” sending shares down more than 54% in the first quarter of 2023.
