Shares of GQG Partners, an Australian-listed investment firm, experienced a sharp 13% drop on Monday. The decline came after analysts at UBS downgraded the company’s stock and estimated that the firm might have suffered a loss of A$600 million (equivalent to $390 million) in funds under management due to the recent indictment of the Adani Group.
GQG Partners has been a prominent investor in companies affiliated with the Adani Group. The group’s founder, Gautam Adani, along with seven associates, faces charges brought by U.S. authorities alleging bribery. However, the Adani Group has strongly denied these accusations, describing them as unfounded and pledging to explore “all possible legal recourse” to defend itself against the allegations.
In response to the unfolding developments, UBS downgraded its rating for GQG Partners’ stock from “buy” to “neutral.” The investment bank also significantly revised its price target for the stock, reducing it from A$3.30 to A$2.30.
