GQG Partners shares plunge 20% after Gautam Adani charged over bribery scheme by US

Shares of Australia-listed fund manager GQG Partners, which is a large shareholder in India’s Adani Group stocks, plunged 20% on Thursday, November 21. The sharp fall in GQG Partners shares comes amid media reports that it was reviewing its investments in Adani Group after US prosecutors charged the Indian conglomerate’s chairman Gautam Adani over an alleged bribery and fraud scheme.

GQG stock price fell as much as 23.1% to AUD 2.03, its lowest level since mid-March. The stock was last down about 22%, set for its worst day ever.

GQG owns a combined stake of 19.37% in Adani Enterprises, Adani Power, Adani Green Energy and Adani Energy Solutions, according to LSEG data.

The US-based investment firm GQG Partners said it is closely monitoring the developments and reviewing its portfolio exposure to the Adani Group to determine if any actions are necessary, a report said.

“Our team is reviewing the emerging details and determining what, if any, actions for our portfolios are appropriate,” GQG said in a statement.

Earlier, US authorities charged billionaire Gautam Adani and seven others in New York in an alleged multibillion-dollar bribery and fraud scheme.

US said Adani and seven other defendants, including his nephew Sagar Adani, agreed to pay about $265 million in bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years, and develop India’s largest solar power plant project, Reuters reported.

Following this, several Adani Group stocks, including the flagship firm Adani Enterprises, suffered steep losses. Adani Enterprises and Adani Ports and Special Economic Zone shares hit their 10% lower circuits of ₹2,538.20 and ₹1,160.15, respectively, on BSE.

Adani Energy Solutions stock price hit its 20% lower circuit of ₹697.70 apiece, Adani Green Energy shares plunged 19%, Adani Power shares and Adani Total Gas stock nosedived 18% each.

Adani Wilmar share price fell 10%, while other Adani group stocks, such as ACC and NDTV, cracked 15% and 14%, respectively, and Ambuja Cements share price also plunged 20% on BSE.

(With inputs from Reuters)