GQG Partners, which backed Adani Group after Hindenburg row, reviews $5 billion bet after US charges

The Florida-based investment firm, which manages billions of dollars, holds ₹42,000 crore ($5 billion) in six Adani Group companies. But the latest allegations have rattled confidence, sending GQG’s depository receipts on the Australian Securities Exchange down more than 20% on Thursday.

In a statement, GQG said it is keeping a close watch on the situation.

"Our team is reviewing the emerging details and determining what, if any, actions for our portfolios are appropriate," GQG said.

GQG, co-founded by India-born investor Rajiv Jain, made waves in March 2023 when it invested ₹15,446 crore ($1.87 billion) in Adani stocks, just weeks after Hindenburg Research’s scathing report accused the group of fraud and stock manipulation. While other investors fled, GQG doubled down, later adding to its positions and seeing its initial investment grow to $5 billion.

The firm’s confidence paid off when Adani shares rebounded after the Hindenburg-driven selloff, and GQG even booked profits by trimming some of its stakes. In October, it participated in Adani Enterprises’ ₹4,200 crore ($500 million) institutional share sale.

US prosecutors allege that between 2020 and 2024, Gautam Adani and his nephew Sagar Adani orchestrated a $250 million bribery scheme to secure Indian government contracts for solar energy projects. These contracts, they claim, were projected to deliver more than $2 billion in profits.

Court filings paint a detailed picture of corruption, with bribes tracked through spreadsheets, phone records, and internal PowerPoint presentations. Former Adani executive Rupesh Agarwal reportedly created bribery documents to plan and conceal payments, while Sagar Adani allegedly tracked the bribes himself.

Prosecutors also allege the group misled US and global investors to raise over $3 billion by falsifying financial statements and concealing its activities.

In a statement, the Adani Group said, “The allegations made by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against directors of Adani Green are baseless and denied.”