Shares of Adani investor GQG fell more than 15% after the UBS downgrades

Shares of major Adani Group investors GQG Partners It fell by 15.74% on Monday Swiss bank UBS downgraded shares from “Buy” to “Neutral” on Friday.

UBS cut its target price on GQG to AU$2.30 from $3.30 Australian dollars. The stock was trading at AU$2.08 at 2:52pm Sydney time.

This is the Swiss firm’s first stock downgrade since it began covering GQG in 2022. The Australian-listed investment firm is the fourth largest investor in major investments Adani Enterprises.

GQG Shares fell to record intraday lows AU$1.96 on November 21 after it was revealed that Adani Group Chairman Gautam Adani Charged with fraud in New York. The stock lost 25%, marking the steepest one-day decline by the investment firm’s listing.

The company said in a Nov. 21 email to CNBC that it is monitoring the Adani situation and is “reviewing emerging details and determining whether actions, if any, are appropriate for our portfolios.”

The investment firm pointed out that its portfolios have “diversified investments”, saying more than 90% of clients’ assets are invested in issuers not affiliated to the Adani Group.

GQG earned billions from the firm’s investment in Adani After the group’s shares fell in January 2023 a Small-seller report From New York The Hindenburg Research.

Rajiv Jain, chairman and chief investment officer of GQG Partners, told CNBC in January this year that his profit on Adani was about $4 billion, but he may have invested in the group.

After a sharp decline following the Adani indictment, the group’s shares recovering. Adani Green EnergyIt’s the company in the eye of the US impeachment storm, which surged 22% on Friday.

“As we work through the legal process, I would like to re-affirm our full commitment to world-class regulatory compliance,” Adani said. He said that it was reported In his first remarks since Saturday’s indictment.

— CNBC’s Anniek Bao contributed to this report.