Global sovereign funds and top investors reaffirm support for Adani Group
New Delhi New Delhi: Abu Dhabi’s International Holding Company (IHC) on Thursday said its outlook on investments in the Adani Group remains unchanged, even after some of the group’s executives have been indicted by the US. In a statement, IHC which is one of the largest sovereign funds managing assets worth $100 billion, said that “their partnership with the Adani Group reflects our belief in their contributions to the green energy and sustainability sectors”.
“As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged,” IHC said. In April 2022, the sovereign fund invested around $500 million in renewable energy arm Adani Green Energy and power company Adani Transmission, and $1 billion in the group’s flagship company Adani Enterprises.
Sri Lanka Ports Authority has also expressed its continued confidence in its partnership with the Adani Group, as it plays a key role in expanding the country’s port infrastructure. With an investment of $1 billion in the Colombo terminal, the project is set to become the largest foreign direct investment in Sri Lanka’s port sector. The Tanzanian government also reaffirmed its commitment to its agreements with Adani Ports, saying it has “no concerns about ongoing projects and all contracts fully comply with Tanzanian law”. Meanwhile, top investors doubled down on Adani Group shares on Thursday. GQG Partners said “we do not believe these actions will have any material impact on these businesses”. “These businesses operate critical infrastructure regulated by the Indian government. In most cases, these are services with long-term contract revenues. We believe the fundamentals of the companies we have invested in remain strong,” he added.
Madhusudan Kela said he has “full confidence in Gautam Adani and his and the group’s capabilities”. “He has built a very strong group of businesses, which is not easy to replicate. For all these reasons, I have invested in the group’s stocks and I have bought more in the recent correction. Such (US DOJ) events will happen, but I see no reason for such panic in share prices. As they succeeded in Hindenburg, they will recover even more strongly from this saga,” Kela said.
