Rajiv Jain’s GQG Partners, on Monday, said the fundamentals of Gautam Adani-led companies they invested in remain sound and there is no change in the investment thesis. The views from a major foreign investor in the Adani group companies came after Indian billionaire Gautam Adani was charged in the US with $250 million bribery. The day before the indictment (November 19), GQG had a total exposure to Adani Group companies of $9.7 billion on a total asset base of $158.6 billion, representing roughly 6.1% of total assets. “We believe this level of exposure is manageable, even given the volatility in Adani Group stocks,” GQG Partners said in a memo. The total exposure came at $8.1 billion on total assets of $156.7 billion, or 5.2% of total assets on November 21. In March 2023, GQG initiated positions in five of the publicly traded members of Adani Group, including Adani Enterprises, Adani Ports and Special Economic Zone, Adani Green Energy, Adani Energy Solutions, and Ambuja Cements. GQG subsequently added exposure to Adani Power and Adani Total Gas. “While each of these companies is a part of the broader Adani conglomerate of companies and share ownership, these are independently listed businesses with separate management. Each has distinct clients and revenue drivers. Since initiating our positions, we have seen strong fundamental growth in these businesses, resulting in meaningful earnings growth,” GQG Partners said, adding these companies manage critical infrastructure for one of the world’s fastest-growing economies. On a fundamental business case, it believes each individual company is well-positioned for the future. “Our investments in Adani as of 21 November have had positive returns in aggregate for our portfolios,” GQG Partners said. Except for AGEL (Adani Green Energy Ltd), the investor believes that the Adani companies do not need to raise more capital at this point. “If they do need additional financing, this cloud will restrict their ability to access foreign capital. However, there are currently no signs of domestic banks, especially India’s government-owned banks, of shutting off credit to the Adani group. As the facts stand today, we believe these companies will keep operating even if individuals receive fines or sanctions. We will remain diligent in re-underwriting our positions and examining any new facts. While we do not anticipate this, any negative actions by the Indian government could have meaningful implications,” GQG Partners said. Shares of Adani Enterprises traded 2.72% lower at Rs 2,196 in the morning trade on November 26. Adani Ports, Adani Energy Solutions and Adani Green Energy also declined more than 2%, 3% and 6%, respectively. On the other hand, the benchmark equity index BSE Sensex traded 0.10% lower at 80,027.