Global investment firm GQG Partners has expressed continued confidence in the Adani Group, asserting that the company’s fundamental business remains sound despite recent US federal allegations.
GQG Partners backs Adani Group amid US Bribery charges
“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,” GQG Partners stated, emphasizing their ongoing commitment to the group.
The investment firm drew parallels with global corporations like Walmart, Oracle, and Petrobras that have faced similar government investigations. They noted such actions “typically take years to resolve and may yield reduced penalties or fines.”
Key points from GQG Partners’ statement on Adani Group include:
– No material impact anticipated on Adani Group businesses
– Stake held in six Adani Group companies between 1.5% and 2%
– Belief that Indian government will maintain support for Gautam Adani
No wrongdoings: Adani Group’s CEO
Adani Group’s CFO Jugeshinder Singh previously confirmed that none of the group’s 11 public companies are implicated in any wrongdoing.
The group’s recent financial results demonstrate resilience. The Trailing-Twelve-Month EBITDA surged 17% year-on-year to USD 10 billion, while funds from operations reached USD 7 billion, growing over 30% annually for five consecutive years.
GQG Partners highlighted that the Department of Justice indictment and SEC action are against individuals, not the entire corporate structure, suggesting investors can differentiate between individual allegations and company performance.
The statement reflects continued investor confidence in the Adani Group’s strategic position and financial health amid external challenges.
