Adani Scandal: GQG Partners Plans $65M Share Buyback Amid Adani Scandal Fallout - Read Now
GQG Partners announced a $65M share buyback after its stock fell 19% due to Adani bribery allegations. The firm, a key Adani backer, holds ₹80,000 crore investments in Adani entities but reassures clients, citing limited exposure to the Indian conglomerate.
Rajiv Jain-led GQG Partners Inc, a prominent backer of the Adani Group, has announced plans to initiate a $65 million (A$100 million) share buyback, according to a Bloomberg report. This decision comes after the firm’s stock, listed on the Australian Securities Exchange (ASX), fell 19% on Thursday, following allegations against Adani executives of involvement in a $250 million bribery scheme.
The sharp decline in GQG’s stock highlights investor concerns about the firm’s significant exposure to Adani companies. However, GQG saw a partial recovery on Friday, rebounding 16%, as the market absorbed the news of the planned buyback.
Adani Allegations and GQG’s Exposure
The U.S. Department of Justice (DOJ) recently charged Gautam Adani and others with orchestrating a bribery scheme to secure solar power contracts. While the Adani Group has dismissed these claims as “baseless,” the allegations have reignited scrutiny of the conglomerate and its investors.
GQG Partners, which holds an estimated ₹80,000 crore in Adani companies like Adani Enterprises, Adani Green Energy, and Adani Ports, has reiterated its strategy of leveraging undervalued assets during periods of negative sentiment. Despite mounting concerns, GQG emphasized that over 90% of its client assets are not linked to Adani entities.
Share Buyback to Bolster Confidence
The $65 million buyback aims to reassure investors amid heightened scrutiny. GQG issued a statement saying it is "monitoring the charges" against Adani and reviewing its portfolio strategy to mitigate reputational risks.
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