The Adani Group: The embattled Indian giant seals a $1.87 billion US deal

Billionaire Indian business empire Gautam Adani says it has secured $1.87 billion (£1.6 billion) 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 the investors.

It marks the company’s first major investment announcement since being accused of stock market manipulation and financial fraud by the short-selling firm Hindenburg Research.

Adani Group has denied these allegations.

The seven publicly traded companies affiliated with the Adani Group have had an estimated $135 billion in value since the Hindenburg Research report was published Jan. 24.

GQG’s investment will be divided among four Adani companies, including flagship company Adani Enterprises.

“This transaction represents the continued confidence of global investors in the governance and management practices and growth of the Adani portfolio of companies,” said Jugeshinder Singh, Chief Financial Officer of the Adani Group.

“We value GQG’s role as a strategic investor in our infrastructure and facilities portfolio for sustainable energy, logistics and energy transition,” added Singh.

Rajeev Jain, Chairman and Chief Investment Officer of GQG, said he believes the “long-term growth prospects for these companies are significant.”

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

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

The company alleged that the Adani Companies had engaged in decades of “brazen” stock manipulation and accounting fraud.

It also alleged that the companies had “significant debts” which put the entire group on a “precarious financial footing”.

Short selling is a bet that the value of an asset will decrease.

The Adani Group denied the allegations and called them an “attack on India”. It had earlier said that the Hindenburg report aimed to enable a US-based short seller to book gains, without citing evidence.

Mr. Adani Group has seven publicly traded companies operating across a wide range of sectors, including commodity trading, airports, utilities, ports and renewable energy.