Gautam Adani’s embattled business empire in India has announced a $1.87 billion (£1.6 billion) investment from a US-based asset management firm.
Adani informed investors that GQG Partners, based in Florida, had purchased shares in four of the group’s companies.
It is the firm’s first significant investment made public since short-seller Hindenburg Research accused it of stock market manipulation and financial fraud.
Adani Group has denied the allegations. Since Hindenburg Research’s report was published on January 24, the value of Adani Group’s seven stock market-listed companies has been reduced by an estimated $135 billion.
The GQG investment will be spread across four Adani companies, including the company’s flagship Adani Enterprises.
“This transaction marks the continued confidence of global investors in the governance, management practices and the growth of Adani portfolio of companies,” said Adani Group’s chief financial officer Jugeshinder Singh.
“We value GQG’s role as a strategic investor in our infrastructure and utility portfolio of sustainable energy, logistics and energy transition,” Mr Singh added.
Rajiv Jain, chairman and chief investment officer at GQG, said he believed the “long-term growth prospects for these companies are substantial”.
He added that Mr Adani was “widely regarded as among the best entrepreneurs of his generation.
Adani Enterprises denied media reports that the conglomerate had secured $3 billion in credit in a separate regulatory filing.
“We would like to clarify that the said news item appears to be a market rumour and hence it would be inappropriate on our part to comment on it,” the firm said.
Earlier on Thursday, India’s Supreme Court announced the formation of an independent panel to investigate allegations made by US short-seller Hindenburg Research against Adani Group firms.
The firm claimed that Adani companies had engaged in “brazen” stock manipulation and accounting fraud for decades.
It also asserted the companies had “substantial debt” which placed the whole group on a “precarious financial footing”.
Short-selling is a bet that an asset’s value will fall. Adani Group has denied the allegations, calling them an “attack on India”. It had previously stated, without providing evidence, that the Hindenburg report was intended to allow the US-based short seller to book profits.
Mr Adani’s group has seven publicly traded companies that operate in a variety of industries, including commodities trading, airports, utilities, and ports.
