2024-11-28 13:09:28 :
MUMBAI: International Holdings (IHC), the investment arm of Abu Dhabi’s ruling family, has become the second company to reaffirm its commitment to Adani after Adani Group Chairman Gautam Adani was indicted by US federal prosecutors for allegedly bribing Indian government officials. A major investor in the Ni Group’s confidence.
In an emailed response to Mint, an IHC spokesperson said: “At IHC, our investment strategy is guided by a commitment to long-term growth and sustainability. We understand that matters involving individuals are different from the operations of the businesses they represent. and potential.”
IHC, which is listed on the Abu Dhabi Securities Exchange, is Adani’s third-largest foreign investor, having invested $2.5 billion. Other large investors include French energy giant TotalEnergies ($3.85 billion) and US investor GQG Partners ($3 billion).
Last week, Rajiv Jain-led GQG Partners backed the Ahmedabad-based conglomerate in a note to investors. The US company’s investments in seven Adani-listed companies are currently worth more than $8 billion.
Also Read | Mint Narrator: What is the US prosecution of Gautam Adani really about?
“Our partnership with Adani Group reflects our confidence in their contribution to the green energy and sustainability sectors,” an IHC spokesperson said, adding that while it continued to evaluate new information and developments, the spokesman added But the outlook for Adani Group remains unchanged.
Adani Group said in a press statement that its 11 listed companies had lost a combined $55 billion in market value as of Wednesday after publicly alluding to the allegations.
U.S. charges
Last week, Gautam Adani, his nephew and Adani Green Energy executive director Sagar Adani and Adani Green Energy managing director Vneet Jaain were indicted by the US Department of Justice and The U.S. Securities and Exchange Commission charges alleged bribery. Prosecutors allege the executives made payments totaling to several Indian government officials $They were charged with three counts of securities and wire fraud for paying bribes of Rs 2,029 crore to obtain favorable power supply deals. Two former executives of Azure Power and three former executives of Canadian investor Caisse de dépôt et Placement du Québec (CDPQ) have also been charged by U.S. prosecutors.
ALSO READ | Adani indictment: FCPA case taking long to wrap up
Adani Group denies all accusations and says it will pursue all legal remedies. Adani Group said in a press statement on Wednesday: “All of this is based on possibilities and rumors from former employees of Azure Power and CDPQ, which makes the DOJ and SEC actions against Adani ethically Still on a dangerously unstable footing legally.”
Adani bulls reduce positions ahead of lawsuit
on Monday, Mint According to the report, two days before the US indictment, bulls in the derivatives desks of the two companies of the group reduced their long positions to avoid the huge losses suffered by the group’s stock price after the news came out. On Nov. 19, two days before the massacre, some traders who held futures positions in Adani Enterprises and Adani Ports had settled or closed a significant portion of those positions. Wednesday (November 20) is a holiday for the Maharashtra Assembly elections.
Also Read | Adani bribery case: Accused executive’s new company secures $1.2 billion investment deal from REC in September
In Adani Enterprises’ active futures contracts, traders closed 16.27 million shares on November 19, reducing open interest (OI) by 8% to 1.78 crore shares at contract price It closed down 0.25% to $The price per share was $2,819.55, National Stock Exchange (NSE) data showed.
On Thursday, after news of the indictment broke, the contract fell 23% based on spot prices to $2,178.55. The plunge came as bulls liquidated a further 2.29 million shares, or 13%, of their open positions to 15.5 million shares.
Follow us On Social Media Twitter/X
