Not changing view on Adani companies: JP Morgan amid probe reports

MUMBAI: Global brokerage firm JP Morgan has said it will stick to its recommendations for Adani Group companies despite reports that US prosecutors are investigating if the Gautam Adani-led enterprise bribed Indian officials to get energy projects cleared.

"Overall, as details are very scant and the investigation itself might not lead to any successful prosecution, with likely limited potential financial/fundamental impact, we do not make changes to our recommendations at this stage for the Adani Group," Love Sharma, senior credit research analyst at JP Morgan, said in a report.

Bloomberg had earlier reported that prosecutors from the US Attorney Office and Justice Department (DoJ) are looking at an Adani Group entity and people associated with it in connection with bribery investigations.


Adani Group has denied any investigation, saying it has not received any notice from the US Department of Justice on the allegations.

The group's listed entities, meanwhile, have seen a fall in their stock prices. Shares of Adani Green ended at Rs 1,823, down 2.52% on the BSE on Tuesday while benchmark Sensex ended 1.01% lower.

Based on the profile of USD bond issuers from Adani Group, the reported investigations could be related to Adani Green Energy, JP Morgan said in its report on Monday. There is one 12GW manufacturing-linked solar energy project that was signed by Adani Green (8GW allocation) with SECI (Solar Energy Corporation of India) in January 2020, it said.