International Holding Co. (IHC) has maintained its investment outlook on the Adani Group, despite the recent US indictment of billionaire Gautam Adani, according to a report by Reuters.
In a statement, IHC, a significant foreign investor in the Adani Group, emphasised its ongoing confidence in the group’s contributions to green energy and sustainability. “Our partnership with the Adani Group reflects this trust,” the company stated. “As with all our investments, we continue to monitor relevant information and developments. At present, our outlook on these investments remains unchanged.”
In October 2023, IHC increased its stake in Adani Enterprises to over 5%, following the sale of its investments in two other Adani companies. At the time, IHC noted that Adani Enterprises, the group’s flagship company, was “uniquely positioned to capitalise on India’s robust growth.”
Additionally, last year, Adani and an IHC subsidiary launched a joint venture focused on creating a platform to leverage AI and blockchain technology for the digitisation of India’s economy.
All 10 listed Adani Group shares continued to recover in today’s trade after the conglomerate claimed that there were no bribery charges against Gautam Adani and other group executives. Of the 10 stocks, Adani Green Energy Ltd (AGEL) and Adani Energy Solutions Ltd (formerly known as Adani Transmission Ltd), scaled their respective 10% upper price bands for the second consecutive session.
The combined market capitalisation of 10 listed Adani Group firms jumped nearly Rs 1.22 lakh crore on November 27. The recovery came after the conglomerate stated that there were no bribery charges against Gautam Adani and other group executives.
On November 27, the market capitalisation of Adani Group companies increased to Rs 12.61 lakh crore from Rs 11.39 lakh crore on November 26.
Gautam Adani, Sagar Adani, and Vneet Jaain have not been charged with any violation of the FCPA (Foreign Corrupt Practices Act) in the counts set forth in the indictment of the United States Department of Justice (DOJ) or the civil complaint of the US Securities and Exchange Commission (SEC),” Adani Green Energy Ltd (AGEL), the company at the centre of the indictment, informed stock exchanges.
Rajiv Jain’s GQG Partners said on Monday that the fundamentals of Gautam Adani-led companies they invested in remain sound, and there is no change in their investment thesis.
The statement from a major foreign investor in Adani Group companies came after Gautam Adani was charged in the US with $250 million in bribery. The day before the indictment (November 19), GQG had a total exposure to Adani Group companies of $9.7 billion on a total asset base of $158.6 billion, representing roughly 6.1 percent of total assets.
