Adani Group: Indian empire signs $1.87bn deal

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Image Source: Time

Adani Group, the troubled business empire of Indian billionaire Gautam Adani says it has gotten $1.87 billion (£1.6 billion) from an asset management firm in the US.

Adani told investors that GQG Partners, based in Florida, has bought shares in four of the group’s companies.

It is the first big investment that the company has talked about publicly since short-seller Hindenburg Research accused it of manipulating the stock market and committing financial fraud.

Adani Group has said that the claims are not true.

Since Hindenburg Research’s report came out on January 24, the value of Adani Group’s seven companies that trade on the stock market has dropped by about $135 billion.

The GQG investment will be divided between four Adani groups of companies, including Adani Enterprises, which is the company’s main business.

Jugeshinder Singh, Chief Financial Officer of Adani Group, said that this deal shows that global investors still have faith in Adani’s companies’ governance, management practices, and growth.

Rajiv Jain, chair and chief investment officer at GQG, said that he thought “long-term growth prospects for these companies are substantial.”

He also said Mr. Adani was “widely thought to be one of the best businessmen of his generation.”

In a separate filing with the government, Adani Enterprises denied that the conglomerate had gotten $3 billion in credit courtesy  a sovereign wealth fund.

In its response, the company said it would like to make it clear that the news item is a market rumor, so it wouldn’t be right to say anything about it.

Earlier on Thursday, India’s Supreme Court chose an independent panel to look into the claims made against Adani Group firms by US short-seller Hindenburg Research.

The company said that Adani companies had “brazen” stock manipulation and accounting fraud going on for decades.

It also said that the companies had “significant debt,” which put the whole group on “shaky financial ground.”

When you short-sell, you bet that the price of an asset will go down.

Adani Group has said that the claims are false and that they are an “attack on India.” It had been said before, without evidence, that the Hindenburg report was meant to help the US-based short seller make money.

Mr. Adani’s group is made up of seven publicly traded companies that work in a wide range of fields, such as trading commodities, airports, utilities, ports, and renewable energy.

India Supreme Court sets up committee to probe fraud allegations against Adani group

India’s Supreme Court has set up a powerful independent panel to look into fraud claims made by a US research firm against the business empire of billionaire Gautam Adani.

In a report from January, Hindenburg Research said that Adani Group firms were manipulating their stock prices and committing financial fraud. This caused its shares to drop sharply.

The group has said that the claims are not true.

But the event led to a political fight, and the opposition leaders called for an investigation into the claims.

The Supreme Court chose a five-person panel to look into the claims on Thursday.

The report is due in two months from the committee, which former judge Abhay M. Sapre will lead.

Minutes after the verdict, Mr. Adani tweeted that his group companies were happy with the decision of the court, which he said would “bring finality in a time-bound manner.”

Chief Justice Dr. DY Chadrachud was in charge of the three-judge bench. Lawyers and politicians had asked for an investigation into the Adani Group after Hindenburg Research accused it of “brazen” stock manipulation and accounting fraud for decades.

During the last hearing, the court said it would not accept the names of experts suggested by the federal government for the committee because it wanted to “keep the case open and honest.”

“If we take names from the government, the committee will be made up of people picked by the government. So we’ll put together the committee and choose its members ourselves “This is what Justice Chandrachud said.

In the last few weeks, the market value of the companies in the Adani Group has dropped by more than $100bn (£82bn). This is because the allegations caused a financial meltdown in Indian markets.

The group has said the accusations are false and made with bad intentions. They have called them an “attack on India.” But the answer hasn’t stopped Adani’s shares from going down.

The founder, Mr. Adani, is no longer one of the top 10 wealthiest people in the world. Forbes’ real-time list of billionaires shows that Mr. Adani is now the 15th richest person in the world, with a net worth of $74.7bn. Last month, he was third on the list.

Read Also: Will Adani Group’s trouble affect India’s green energy dream?

People think that Mr. Adani is close to Prime Minister Narendra Modi. Opposition politicians have been saying for a long time that he has used his political connections to his advantage, which he denies.