Gautam Adani’s US plans in turmoil? Bond axed, GQG reels amid charges; here's what we know

Just last week, Gautam Adani had congratulated Donald Trump on his presidential win, pledging a $10 billion investment in US energy and infrastructure projects. Now, those ambitions are under scrutiny after US prosecutors filed bribery charges against the billionaire and his associates.

The allegations, centered on a $265 million scheme to bribe Indian officials for solar energy contracts, have already hit Adani Group hard. The conglomerate scrapped a $600 million bond offering on Thursday, just hours after pricing it, and its U.S. dollar bonds plunged in Asian trading.

Adani had committed to leveraging his group’s expertise to create 15,000 jobs in the US, deepening ties between India and America. However, the bribery charges now cast doubt on these plans, especially as global investors reevaluate their positions.

Singapore-based fund manager Mohit Mirpuri noted: “While Adani has shown resilience in weathering past allegations, this development underscores persistent risks around governance, transparency, and regulatory scrutiny.”

Adani Group stocks tumbled by as much as 23%, wiping out significant market value. Adani Green Energy’s dollar notes issued in March recorded a 15-cent drop, while other group companies saw their bonds hit record lows. GQG Partners LLC, a key US-based investor with a $10 billion stake in Adani companies, also faced fallout. Its Sydney-listed depository receipts fell 19 per cent, raising questions about its exposure to the embattled conglomerate.

The latest charges reignite scrutiny following the 2023 Hindenburg Research report that accused Adani of running the world’s largest “corporate con.” Although Adani rebounded from that scandal, raising fresh capital and rebuilding market confidence, the current crisis threatens to undo those gains. 

Adani Group has yet to issue a detailed response to the charges, which could stall its US plans and global ambitions.