Gautam Adani ‘bribery’ case: GQG refuses to sell Adani shares; here’s why

GQG Partners, one of the largest foreign institutional investors in the Adani Group, has decided not to sell its stake in the group. The investment giant said in an official statement that its exposure to Adani Group shares is manageable even during periods of stock market volatility.

According to disclosures, the American investment giant’s total investment in Adani Group is US$9.7 billion, with total assets of US$158.6 billion, accounting for 6.1% of the company’s total assets.

“As of Tuesday, November 19 (the day before the indictment), GQG’s total exposure to Adani Group companies was USD $9.7B and total assets were USD $158.6B, representing approximately 6.1% of our total assets,” the company said . investment company.

Adani Enterprises Ltd, the flagship company of the Adani Group, closed 1.26% higher at $Monday, November 25th was 2,257.65, compared to $The previous market close was 2,229.65.

The firm also said risk exposures are weighted differently across strategies, with emerging markets and international strategies carrying the largest weights. “We have no exposure in our U.S. equity strategy.”

“We believe this level of exposure is manageable, even given the volatility in Adani Group’s shares,” GQG Partners said in a statement.

US market regulator’s assertion won’t affect Adani

As of Thursday, November 21, GQG Partner had total assets of $8.1 billion and total assets of $156.7 billion, accounting for 5.2% of the company’s total assets.

On the allegation front, the company does not believe the US securities regulator’s charges will have any significant impact on the Adani Group’s business.

“We do not believe these actions will have a significant impact on these businesses,” GQG said.

The foreign investor also stressed that the critical infrastructure operated by Adani Group companies is regulated by the Indian government. In most cases, these are services with long-term contract revenue.

The investment firm noted that Adani Green Energy Limited (AGEL) is an exception to this provision. “We understand that Adani does not need to raise further capital at this time,” it said.

“We will continue to work to reaffirm our position and review any new facts,” GQG said, focusing on the fact that while nothing will happen to the Indian government, any negative action could have a meaningful impact.

In response to questions about the allegations previously raised by US short-selling agency Hindenburg Research, GQG Partners said that after reviewing the allegations, it found that there was no direct connection with the claims of the SEC’s indictment.

“The charges brought by Hindenburg are not directly related to the allegations in the SEC’s indictment,” the company said in an official statement.