GQG Backs Adani Group —'Strong Fundamentals... Well Positioned For Future'

Adani Group companies are well-positioned for the future, managing critical infrastructure in one of the world’s fastest-growing economies, GQG Partners said in a statement, as it maintained confidence in the companies' fundamentals, with no changes in its investment outlook at present.

The investment firm added that the Adani Group entities operate under government regulation, with many relying on long-term contractual revenues. GQG Partners further emphasised that it does not view the current actions as materially impacting the companies' operations.

The Adani Group has firmly rejected the allegations made by the US Department of Justice and the US Securities and Exchange Commission against its directors, describing them as "baseless" and categorically denying any wrongdoing.

In response to the charges brought against Adani Green Energy and its directors, the conglomerate issued a statement emphasising that, as per the DOJ’s own statements, "the charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty." The group further assured stakeholders that it would pursue all available legal recourse to address these accusations.

Addressing the recent DOJ indictment and SEC action, GQG Partners clarified that these are directed at individuals and pertain only to Adani Green Energy Ltd, not other Adani companies. The firm pointed out that many global companies, such as Wal-Mart, Siemens, and Oracle, have faced similar actions. "These investigations typically take years to resolve and may result in reduced penalties, with companies continuing to operate and improve their practices in the meantime," GQG Partners said.

"GQG has reiterated that it is a non-case. Adani Ports has a big funding from the US International Development Finance Corp and there would have been check of Adani companies," said Chakri Lokapriya, the managing director of TCG Asset Management, adding, "Adani Group companies are on a strong wicket."

He also said the investigating officer in the case will most likely be changed after the Trump administration comes in. "It will depend on the view of the new appointee."

Since initiating its investments in Adani, GQG noted strong fundamental growth, resulting in meaningful earnings growth. The firm reiterated that it has not changed its outlook on the companies.

GQG Partners also expressed confidence that the Indian government will continue to support Gautam Adani, given his significant role as the country’s leading infrastructure developer.

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