New Delhi, March 19 (IANS) Given the high level of transparency involved in various renewable energy tenders floated in India, the scope for corruption and bribery looks “highly unlikely” for the Adani Group, a JP Morgan report said on Tuesday, adding that the global brokerage firm is not changing its views on the global conglomerate.
Over the weekend, Bloomberg reported that prosecutors from the US Attorney Office and Justice Department (DoJ) are looking at an Adani Group entity and Azure Power Global around potential bribery investigations.
The global brokerage firm said in its latest note that they looked at the legal basis of such investigations and the potential impact.
“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. For Azure Power, we move to Neutral due to tight valuations amid the noise,” said JP Morgan.
The news article highlights an Adani Group entity that was potentially involved in “paying officials in India for favorable treatment on an energy project”.
“Based on the profile of USD bond issuers from the group, this could be related to Adani Green Energy. The association with Azure Power in the same article also reportedly points to this,” according to the report.
Notably, there is one 12GW manufacturing-linked solar energy project that was signed by both Adani Green (8GW allocation) and Azure Power (4GW) with SECI (Solar Energy Corporation of India) in January 2020.
“This project remains under construction and does not form part of any of the Restricted Group bonds from these two entities,” the report mentioned.
Overall, assuming this is related to the renewable energy project of the companies, “we believe such provisions are highly unlikely to lead to a material financial impact even if the reported investigation moves to the prosecution stage and thereupon establishment of an instance of bribery”.
“Given the high level of transparency involved in various renewable energy tenders floated in India, the scope for significant corruption and bribery looks highly unlikely to us”.
On Azure Power, the firm said that “we remain comfortable on the fundamentals here, where the recent bond buyback (as stipulated in bond covenants) highlights continued good operating cash flows at the two RG bonds”.
–IANS
na/dpb
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
