Besieged Indian multinational Adani Group has received a leg up from US investment firm GQG Partners by way of a US$1.87bn (£1.56bn) investment in Indian mogul Gautam Adani’s ports-to-power empire.
Australia-listed GQG spread its investment across four subsidiaries: Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission and Adani Enterprises, the group told investors on Thursday.
Adani’s chief financial officer Jugeshinder (Robbie) Singh said it marked “continued confidence of global investors in the governance, management practices and the growth of Adani Portfolio of companies”.
But Adani has a steep climb ahead of it before recouping the stunning US$145bn in market losses the group has seen in the past month in the wake of Hindenburg Research’s brutal investigation into the group.
Hindenburg, an infamous New York activist investment firm and short seller, published a lengthy research piece into Adani’s Indian business empire in January.
“We have uncovered evidence of brazen accounting fraud, stock manipulation and money laundering at Adani, taking place over the course of decades,” the report concluded.
Gautam Adani, who was Asia’s richest man until recently, has robustly denied the allegations, but investors rushed for the exit regardless, sending shares in Adani’s seven listed subsidiaries into a US$145bn tailspin.
Gautam Adani has gone as far as calling Hindenburg’s paper an “attack on India”.
Yet Gautam Adani, whose friendship with Indian prime minister Narendra Modi has come under scrutiny from opposition politicians, is now facing a Supreme Court investigation into his company following Hindenburg’s claims.
Gautam Adani said he welcomed the investigation. "The truth will prevail," he Tweeted on Thursday.
The Adani Group welcomes the order of the Hon'ble Supreme Court. It will bring finality in a time bound manner. Truth will prevail.
— Gautam Adani (@gautam_adani) March 2, 2023
Despite the conglomerate's woes, Rajiv Jain, chairman and chief investment officer at GQG, said he believed the "long-term growth prospects for these companies are substantial".
He added that Gautam Adani was "widely regarded as among the best entrepreneurs of his generation".