By Scott Murdoch

SYDNEY (Reuters) -GQG Companions Inc’s Australian-listed shares fell by as a lot as 3% on Friday after the worldwide funding agency pumped $1.87 billion into 4 firms beneath embattled Indian conglomerate Adani Group.

The Florida-based agency purchased 3.4% of Adani Enterprises Ltd for about $662 million, 4.1% of Adani Ports and Particular Financial Zone Ltd for $640 million, 2.5% of Adani Transmission Ltd for $230 million, and three.5% of Adani Inexperienced Vitality Ltd for $340 million, confirmed an Adani regulatory submitting.

By early afternoon, GQG shares have been off 3% whereas the S&P/ASX200 benchmark index was up 0.4%.

GQG’s transfer represents the primary main funding in Adani Group since a short-seller’s crucial report of the conglomerate on the finish of January triggered a inventory rout.

Seven listed Adani firms have misplaced some $135 billion in market worth since Jan. 24, when Hindenburg Analysis accused the group of improper use of offshore tax havens and inventory manipulation.

The group, led by billionaire Gautam Adani, denied the allegations.

GQG’s Chairman and Chief Funding Officer Rajiv Jain instructed Reuters the Australian-listed agency had carried out its personal “deep dive” into Adani and disagreed with Hindengurg’s report.

“Based mostly on previous feedback of Rajiv Jain, he’s the kind of investor that goes for wherever there’s unrealised worth,” mentioned Morningstar analyst Shaun Ler who covers GQG Companions

“He doesn’t explicitly run an ESG fund, and importantly, his buyers are effectively conscious of that,” he mentioned in reference to GQG shopping for into Adani which has main coal belongings. ESG stands for environmental, social and governance.

“There might be individuals who keep away from shopping for GQG as a result of Rajiv’s selections; there may even be those that need to make investments with them given their good efficiency.”

GQG’s inventory is up 3.58% to this point this yr which is according to the ASX200.