Adani Group: Controversial Indian giant closes $1.87 billion US deal

Indian multi-billionaire Gautam Adani’s embattled business empire says it has secured $1.87bn (£1.6bn) in investment from a US-based asset management firm.

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

It is the company’s first major investment to be made public since it was accused of stock market manipulation and financial fraud by short-seller Hindenburg Research.

Adani Group has denied the allegations.

The Adani Group’s seven publicly traded companies have lost an estimated $135 billion in value since Hindenburg Research’s report was released Jan. 24.

The GQG investment will be split between four Adani companies, including flagship company Adani Enterprises.

“This transaction marks the continued confidence of global investors in the governance, management practices and growth of the Adani portfolio of companies,” said Adani Group chief financial officer Jugeshinder Singh.

“We appreciate GQG’s role as a strategic investor in our infrastructure and utility portfolio of renewable energy, logistics and energy transition,” added Mr. Singh.

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

He added that Mr Adani was “widely regarded as one of the best entrepreneurs of his generation”.

“We would like to clarify that the said news item appears to be a market rumor and therefore it would be inappropriate to comment on it,” the company said.

The company alleged that Adani companies were guilty of decades of “brutal” stock manipulation and accounting fraud.

It also claimed that the companies had “significant debts” that put the entire group in a “precarious financial position”.

Going short is betting that the value of an asset will fall.

Adani Group has denied the allegations, calling them an “attack on India”. It had previously said the Hindenburg report was intended to enable the US-based short seller to make profits, citing no evidence.

Mr. Adani’s group has seven publicly traded companies operating in a wide variety of industries, including commodities trading, airports, utilities, ports and renewable energy.