Adani was the world’s third-richest person until a recent stock market crash was set off by allegations of accounting fraud by a US-based short seller.
Qatar Investment Authority (QIA) has reportedly acquired a 2.7% stake in Adani Green Energy Ltd. for a sum of approximately $474 million, Reuters reported.
The investment into the Adani Group-owned renewable power producer was confirmed according to data by Refinitiv, the report added.
The investment comes at a crucial time for Adani Green Energy, a subsidiary of Adani Group, which has been grappling with allegations of stock manipulation and financial fraud.
Earlier this year, Hindenburg Research accused the conglomerate of these transgressions, leading to a sharp decline in share prices.
Adani Group swiftly denied the accusations, deeming them as malicious and false, and called them an “attack on India.” However, the response has failed to halt the plummeting of Adani shares.
QIA’s investment in Adani Group serves as a vital endorsement for Gautam Adani, the billionaire founder of the corporation, who has seen his fortunes decline in the wake of the allegations.
Once ranked as the third richest person globally, Adani has now slipped to 15th on Forbes’ real-time billionaires list, with a net worth of $74.7bn.
Gautam Adani heads Adani Group, one of India’s most prominent companies with operations spanning commodities trading, airports, utilities, and renewable energy.
Besides QIA, GQG Partners has also invested significantly in the Adani Group, further bolstering the conglomerate’s financial position.
Adani Green Energy has recently revealed plans to raise $1.5 billion through a qualified institutional placement (QIP) to fund expansion. The share sale intends to draw more institutional investors and research analysts to back the company’s ambitious growth strategy.
QIA’s investment in Adani Green Energy aligns with its broader strategy to enhance exposure in India. According to sources, the sovereign wealth fund is also engaging in talks to acquire a minority stake in Reliance Retail Ventures, India’s largest brick-and-mortar retailer.
The QIA, ranked as the 10th-largest sovereign wealth fund globally according to SWF Institute data, is perceived to be strengthening its presence in the subcontinent, reflecting an ongoing commitment to invest in one of Asia’s most dynamic markets.