Adani-backed GQG Partners to announce share buyback, claims report

Rajeev Jain-led GQG Partners Inc, one of the largest investors and backer of Gautam Adani’s Adani Group, may buy back its own shares after they fell on concerns about the fund manager’s influence over the Indian conglomerate, news agency Bloomberg reported.

The US investment firm plans to buy up to A$100 million ($65 million) of depositary receipts registered in Sydney, according to the report.

GQG shares fell 19 percent on Thursday after U.S. prosecutors charged billionaire Gautam Adani and several other company executives with facilitating a $250 million bribery scheme. In response, the Adani Group called the allegations “baseless”.

However, Jain-led GQG Partners, which is listed on Australia’s ASX, saw a sharp recovery on Friday, rising about 16 percent.

GQG Partners Jaina was one of the first backers of Adani Group after a January 2023 Hindenburg Research report accused the conglomerate of financial irregularities.

GQG has invested around Rs 80,000 crore in Adani companies, with significant stakes in Adani Enterprises, Adani Green Energy and Adani Ports.

Jain described the moves as strategic, leveraging undervalued assets amid negative sentiment. His investment initially appeared prescient as Adani shares soared, nearly recouping the $150 billion lost by the Hindenburg report.

The latest allegations – a $250 million bribery scheme to secure solar energy contracts – have drawn renewed scrutiny. GQG issued a statement saying it was “monitoring the allegations” and “reviewing the emerging details to determine appropriate actions in relation to its portfolios.”

Highlighting that more than 90 percent of client assets are not linked to Adani, the firm faces growing pressure from institutional investors to address reputational risks.