GQG Partners—a key backer of Adani Group—saw its shares drop 13 per cent on Monday following a UBS downgrade. The firm reportedly lost A$600 million in value after US authorities indicted Gautam Adani and associates on bribery and securities fraud charges. Adani Group has dismissed the allegations as baseless and vowed to pursue legal recourse. GQG’s exposure to Adani and weak November fund inflows have led analysts to predict slow growth for the Australian-listed asset manager.
Meanwhile, Andhra Pradesh’s power supply agreement with Adani Green Energy has landed in a precarious situation as the State Cabinet is set to deliberate its future on December 3. The contract, facilitated through the Solar Energy Corporation of India (SECI), obligates the state to pay nearly ₹2,800 crore annually for 25 years if cancelled, sources told businessline. If accepted, retail consumers may face an increased tariff of 80 paise to ₹1 per unit due to geographical network access costs.
Adani Green is contracted to supply 3 GW of renewable energy by 2024, with additional commitments of 3 GW in 2025 and 1 GW in 2026. On Friday, Adani Group CFO Jugeshinder Singh asserted that the State would be the primary loser if the project is cancelled, as Adani could profit more by selling power on the open market. He emphasised that SECI or Andhra Pradesh officials had not approached Adani Green about the project’s status.
The US indictment against Adani executives has raised global concerns, but Adani Group’s strong stock performance in recent days suggests investor confidence remains resilient. The fallout has intensified political and legal challenges for the conglomerate while testing its financial backers’ loyalty.