Mark Mobius Endorses Adani Group: "An Investment In Adani Is An Investment In India"

Mark Mobius, founder of Mobius Capital Partners LLP, has given a significant endorsement to the Adani Group, stating that "an investment in Adani is an investment in India."

In a video interview from Dubai with NDTV Profit, Mobius explained, "I think it's important to remember an investment in Adani is really an investment in India. Now, maybe some people would say that's going too far."

He further elaborated, "When you invest in Tata or Reliance, you're also investing in India, but in the case of Adani, it's very important because of the infrastructure work they're doing. So I think it makes sense for them to keep on doing what they're doing."

When asked about The Washington Post article alleging that Life Insurance Corporation (LIC) pushed through a proposal in May to direct approximately $3.9 billion in investment to Adani group companies, Mobius suggested it was a "hit job."

"I think so. Well, I think the whole story of Adani has been overblown. I think they're doing good work. It is true being a family-oriented organization is no question there'll be cross shareholdings, that sort of thing. But generally speaking, I think the company should get the support because they're so important to the infrastructure of India in addition to other companies, of course," he stated.

Mobius defended LIC's investment in Adani, saying, "I think it's fair for LIC to invest in Adani. It will help them. As long as they keep an eye on the balance sheet and on the profit and loss statements and the auditor statements, then it should be okay."

In response to the article, LIC released a statement on Saturday denying the allegations, stating they are "false, baseless, and far from truth." The company clarified, "No such document or plan as alleged in the article has ever been prepared by LIC, which creates a road map for infusing funds by LIC into Adani group of companies."

Speaking on India's economic outlook, Mobius expressed optimism, noting that India's "GDP growth of 6% is quite amazing" and that inflation has reached its lowest levels in a very long time.

"So there are a lot of very positive signals. So we're betting on India going forward," he concluded.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)