After Pumping $1.87 Bn In Adani, GQG Partners' Share Fall 3% In Australia

The company had invested a total of $1,87 billion in four companies under the Indian conglomerate Adani Group. Under the investment, the Florida-based firm bought 3.4% stake in 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 $340 million, showed an Adani regulatory filing.

By early afternoon, GOG shares fell by 3% and the S&P/ASX200 benchmark index was up 0.4%. Notably, GQG's investment has come at a time when Adani Group a large chunk of its wealth due to the plummeting value of its stocks in the market after the Hindenburg report. The company is the first major investment received by the Adani Group since the Hindenburg report alleged the company of ‘stock manipulation and accounts fraud’.

Also Report: Adani denies report of securing $3 billion from sovereign wealth fund

Due to the allegations, which the Adani group termed baseless, seven listed Adani companies have lost some $135 billion in market value since Jan. 24. The Gautam Adani-led group called the report as an attempt to malign India's image at a global front.

Also Report: Adani Bonds flash warnings even as $153 billion stock rout eases

In a time when investors and companies are pulling out their money from Adani Group, GQG's confidence upon the group comes from its own “deep dive" research about the compahy.

GQG's Chairman and Chief Investment Officer Rajiv Jain told Reuters that his firm had carried out its own "deep dive" into Adani and its findings don't relate with that of Hindenburg's report.

Also Read: Mukesh Ambani, Gautam Adani and a game of cricket

"Based on past comments of Rajiv Jain, he is the type of investor that goes for wherever there is unrealised value," said Morningstar analyst Shaun Ler who covers GQG Partners. GQG's stock is up 3.58% so far this year which is in line with the ASX200, reported Reuters.

Shaun Ler also added that Rajiv Jain doesn't run environmental, social and governance (ESG) funds. His investors are also well aware of that. Notably, ADani group's owns a large share of coal mines. The decision to invest in the Adani firm could prove to be a double-edged sword. The Morningstar analyst said there will be people who might avoid buying GQG shares due to Rajiv's decisions, and there will be also those who might want to invest their money due to the company's good performance.

(With inputs from Reuters)