GQG Partners, an investor in Adani group companies, is monitoring charges against Gautam Adani and Adani group executives in the bribery case, Reuters quoting sources said. The investment company's shares took a beating in Australian trading, falling18 per cent to AUD $2.17 apiece, as it has investments in Adani Green Energy, which in the past raised more than $175 million in US and is facing charges regarding paying bribery to Indian officials.
GQG also has significant investments in Adani Energy Solutions, Adani Power, Ambuja Cements and Adani Ports, among other Adani group companies.
The US Securities and Exchange Commission (SEC) has charged Gautam Adani and Sagar Adani, saying Gautam and Sagar Adani allegedly induced US investors to buy Adani Green bonds through an offering process that misrepresented not only that Adani Green had a robust anti-bribery compliance program but also that the company’s senior management had not and would not pay or promise to pay bribes.
During the alleged scheme, Adani Green raised more than $175 million from US investors and Azure Power’s stock was traded on the New York Stock Exchange, SEC said in a statement.
SEC suggested the bribery scheme enabled two renewable energy companies-- Adani Green and Azure Power, to capitalise on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government.
Earlier, US prosecutors indicted billionaire Gautam Adani and seven other senior business executives in connection with an alleged $250 million bribery scheme that they said was concealed from US investors.
The alleged scheme took place between 2020 and 2024, where the defendants agreed to pay more than $250 million in bribes to Indian government officials to obtain lucrative solar energy supply contracts, which were projected to generate more than $2 billion in profits after tax over an approximately 20-year period.
Adani group stocks have seen some selling of late, in line with the market fall. The flagship Adani Enterprises is down 6 per cent in the past one month against a 4.49 per cent drop in the BSE Sensex. Adani Ports fell 8.28 per cent, Adani Power plunged 14.29 per cent while Adani Energy Solutions tanked 16.53 per cent during the same period. Adani Green Energy plummeted 18.65 per cent. Adani Total Gas is down 8.36 per cent for the one-month period.