Despite the recent $265 million bribery scandal involving Adani Green Energy in the U.S., GQG Partners, led by Rajiv Jain, remains steadfast in its support of the Adani Group. The investment firm announced on Monday that it will not alter its strategy, emphasizing confidence in the conglomerate’s fundamentals.
GQG Partners holds $9.7 billion in Adani Group stocks, representing 6.1% of its total assets. In a memo, the firm highlighted that the allegations target individuals rather than Adani’s companies, adding that the scandal pertains exclusively to Adani Green Energy and not other entities in the group.
Adani Group stocks experienced significant initial losses, shedding ₹2.45 lakh crore in market value over three days. However, GQG emphasized that its diversified investments across seven Adani companies, including Adani Enterprises and Adani Ports, have yielded aggregate positive returns as of November 21.
While concerns loom over Adani’s access to foreign capital, GQG noted that domestic financial institutions, including Indian government banks, have shown no indications of restricting credit. However, contrasting sentiments emerged from TotalEnergies, a French energy major, which has paused new investments in Adani-linked projects until the allegations are resolved.
GQG, which began investing in the Adani Group during the Hindenburg crisis, reiterated its confidence in the conglomerate’s independent business operations, strong growth trajectory, and resilience amid challenges.
