Mon Nov 25 18:19:34 UTC 2024: **Adani Group Faces Divergent Investor Reactions After US Bribery Indictment**

MUMBAI, INDIA – The Adani Group is facing contrasting reactions from its major investors following a US indictment charging Gautam Adani and two other directors with a $250 million bribery scheme. French energy giant TotalEnergies, a significant investor with a combined $3.85 billion investment since 2019, announced it is halting new investments until the allegations are resolved. Conversely, US-based GQG Partners, a major shareholder which invested nearly $3 billion since March 2023, reaffirmed its confidence in the Adani Group, predicting continued Indian government support.

The US Department of Justice alleges that Adani, along with Adani Green Energy executive director Sagar Adani and managing director Vneet Jaain, paid bribes to secure favorable solar power agreements. The indictment also accuses the group of withholding information about the investigation from US investors.

TotalEnergies, holding stakes in several Adani ventures including Adani Green Energy and Adani Total Gas, stated it was unaware of the investigation and will not contribute further funds until the accusations are clarified. This marks a second pause in investment for TotalEnergies, who previously halted investments following allegations of stock manipulation and accounting fraud by short-seller Hindenburg Research in January 2023.

GQG Partners, however, maintains its bullish stance, believing the Indian government will continue backing Adani due to his significant role in infrastructure development. While acknowledging the seriousness of the indictment, GQG Partners believes the allegations against individuals won’t materially impact the group’s companies. The firm’s statement acknowledged that the investigations are expected to be lengthy, potentially affecting the group’s ability to secure foreign capital.

Legal experts predict a protracted legal battle. The Securities and Exchange Board of India’s report on the Hindenburg allegations is yet to be submitted to the Supreme Court. The Adani Group denies all allegations.

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