GQG Partners on Monday said it does not expect any ‘material’ impact on the businesses of the Adani group arising from US prosecutors indicting Gautam Adani and his nephew Sagar Adani for allegedly engaging in a bribery scheme of $250 million.
In a memo on the Adani group, GQG said it’s exposure in the group as of November 21 is $8.1 billion of its total assets of $156.7 billion, or 5.2 per cent.
On November 19 (the day before the indictments), its exposure stood at $9.7 billion on a total asset base of $158.6 billion, or 6.1 per cent. The stock prices of the Adani group had crashed after the allegations.
According to GQG, the indictment by the department of justice and the Securities and Exchange Commission action are against individuals only.
“The allegations relate only to Adani Green Energy Ltd (AGEL), not other Adani companies. While the allegations are serious, there are many examples of global companies and their executives who have faced significant government action, including Foreign Corrupt Practices Act (FCPA) violations.’’
It added that these actions and investigations typically take years to resolve and may yield reduced penalties or fines. The companies continued to operate in the interim, looking to improve their business practices and moving their businesses forward.
“The indictment is happening during a period of transition for the US federal government, which means the case will likely continue under a new Justice Department, appointed by the Trump administration. We feel the Indian government will maintain its support for Gautam Adani as he is the most important infrastructure developer in the country by order of magnitude,’’ it pointed out.
