The Adani Group is “well-positioned for the future” as the “fundamentals” of the companies remain sound, underscored top investment firm GQG Partners, backing the group amid the US federal indictment.
“We recognize the distinction of the allegations of the individuals vs the companies. We believe the fundamentals of the companies we are invested in remain sound. As we do with other holdings, our team continues to do research and reassess the situation but as of now we have not changed our view on the prospects for these investments,” said GQG Partners in a statement.
GQG Partners cited the example of multiple global companies – Walmart, Oracle, Siemens, Petrobras, Pfizer, Toyota – facing similar government action, adding that “these actions and investigation typically take years to resolve and may yield reduced penalties or fines”.
“The indictment is happening during a period of transition for the US federal government, which means the case will likely continue under a new Justice Department, appointed by the Trump administration. We feel the Indian government will maintain its support for Gautam Adani as he is the most important infrastructure developer in the country by order of magnitude,” the company said.
None of the Adani Group’s 11 public companies is implicated or accused of any wrongdoing, the group’s Chief Financial Officer (CFO) Jugeshinder Singh said last week.
The Adani Group has strongly condemned the US report, terming it “baseless.”
“As the facts currently stand on 21 November, we do not see these actions as having a material impact on these businesses,” said GQG Partners, one of the first investors to acquire a stake in the Adani Group following last year’s Hindenburg row.
As of September-end, GQG Partners held a stake in six Adani Group companies, which ranged between 1.5% and 2%.
“The DOJ indictment and SEC action are against individuals only. The allegations relate only to AGEL, not other Adani companies. While the allegations are serious, there are many examples of global companies and their executives who have faced significant government action, including Foreign Corrupt Practices Act (FCPA) violations. Some notable examples include Wal-Mart, Oracle, Thales, Siemens, Glencore, Petrobras, Pfizer, Toyota, Honeywell, Airbus, and SAP,” said the investment firm.
“We have seen a domino effect across Adani Group companies, but declines were mixed. We believe that investors were able to differentiate between the facts related to the individuals and the respective companies,” the firm said responding to the impact on markets in view of the US report.
Earlier today, the Adani Group announced robust financial health and steady growth through its latest H1 FY25 and Trailing-Twelve-Month (TTM) results, despite external pressures.
The Trailing-Twelve-Month EBITDA – earnings before interest, taxes, depreciation, and amortisation – surged 17 per cent YoY to USD 10 billion. Simultaneously, funds from operations (FFO) reached USD 7 billion, growing at over 30 per cent annually for five years.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
