Adani Group's Biggest US Shareholder GQG Partners Evaluating Investments Post US Court, SEC Orders
Moneylife Digital Team 22 November 2024
GQG Partners Inc, one of the first investors to acquire a stake in the Adani group post the Hindenburg scandal in 2023, says it is monitoring the charges brought by the US attorney's office for the eastern district of New York and the US Securities and Exchange Commission (SEC) against Gautam Adani and certain other Adani group executives and companies, says a report from CNBC TV18.
 
In a statement, the Rajiv Jain-led asset management firm says, "Our team is reviewing the emerging details and determining what, if any, actions for our portfolios are appropriate. We note that, consistent with our portfolio construction guidelines, GQG portfolios make diversified investments and in aggregate in excess of 90% of our clients' assets are invested in issuers unrelated to the Adani group."
 
According to a report from Economic Times, GQG Partners hiked its stake in four Adani group companies during the September quarter while state-run Life Insurance Corporation of India (LIC) pared its holdings in two companies. "The data predates this week's developments where the combined market capitalisation of all 11 Adani stocks fell by around Rs2.25 lakh crore following charges of bribery brought against founder Gautam Adani by US authorities," the report says.
 
GQG Partners, listed on Australia's ASX, saw a 15.5% rebound in its shares to AUD2.46 on Friday, after a 19.3% drop following bribery charges against the Adani group. 
 
On Thursday, the US Securities and Exchange Commission (SEC) and the attorney's office for the eastern district of New York filed civil and criminal charges against Mr Adani, his nephew Sagar Adani and other executives of the Adani group. US prosecutors charged Mr Adani and his associates for allegedly paying a US$250mn (million) bribe to Indian officials.
 
The initial SEC complaint accused the executives of offering to pay 'hundreds of millions of dollars in bribes' to Indian government officials to obtain energy purchase contracts at above-market rates. (Read: US SEC Charges Adani Group Executives of "Massive Bribery Scheme")
 
The Adani group vehemently denied the allegations, terming them 'baseless'. Adani group spokesperson emphasised the preliminary nature of the charges, highlighting the legal principle of presumption of innocence. (Read: Adani Group Refutes US Bribery Allegations, Maintains Innocence)
Comments
Array
Free Helpline
Legal Credit
Feedback