GQG Partners, Paring Losses In Australia After Investing In Adani Group, To Meet Clients & Investors

GQG Partners, that has been listed in Australian Securities Exchange Ltd, had seen a dip in its stock price after the news about its big investment in Adani Group was out in public

New Delhi: GQG Partners Inc, that made headlines in the national and international media last week after it’s $1.9 billion dollar investment in the embattled Adani Group, will hold a meeting with its clients and investors in Australia this week, said the company in a statement on Tuesday, according to Reuters.

The meeting that will be held by Rajiv Jain, the founder of GQG Partners, will explain to its investors and clients about its decision to pump in $1.9 billion dollars into Adani Group that’s currently facing attacks from both domestic and international fronts.

GQG Partners’ investment worth $1.87 billion in four Adani group companies was the first major investment in the Indian conglomerate ever since US-based short seller Hindenburg Research’s critical report sparked a stock rout. The report by Hindenburg Research was published on 24 January 2023 accusing the Adani Group of improper use of offshore tax havens, stock manipulation. The short seller also flagged concerns about the debt levels of Adani Group.

Adani has rejected the allegations and denied any wrongdoing.

GQG Partners, that has been listed in Australian Securities Exchange Ltd, had seen a dip in its stock price after the news about its big investment in Adani Group was out in public. As per Reuters, the stake purchase has raised queries from an Australian pension fund client of GQG, at a time when major investors, including Norway’s sovereign wealth fund, were selling the stock.

This meeting between Jain and GQG Partners’ clients will be happening both in person and over conference calls, sources told Reuters.

“Rajiv Jain is visiting Australia this week to meet with investors. The trip was planned well in advance of the Adani purchase,” the statement to Reuters said. “It’s also an opportunity to respond to any questions they have about the business including the Adani investment.”

It is Jain’s first visit to Australia since the company listed on the ASX in 2021, the statement said.

GQG bought 3.4% of Adani Enterprises Ltd (ADEL.NS) for about $662 million, 4.1% of Adani Ports and Special Economic Zone Ltd (APSE.NS) for $640 million, 2.5% of Adani Transmission Ltd (ADAI.NS) for $230 million and 3.5% of Adani Green Energy Ltd (ADNA.NS) for $340 million.

It purchased the stock from the Adani family trust, according to the Indian firm’s filings.