"An Investment In Adani Is An Investment In India": Investor Mark Mobius

The Adani Group, a sprawling ports-to-power conglomerate, received a big thumbs up from veteran investor Mark Mobius, who said "an investment in Adani is an investment in India". 

"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," Mobius, in a video interview from Dubai, told NDTV Profit.

"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," said the investor, founder of Mobius Capital Partners LLP.

Asked if The Washington Post article, which alleged that the state-insurer Life Insurance Corporation (LIC) pushed through a proposal in May to steer roughly $3.9 billion in investment to the Adani group's companies, was a hit job, the investor answered in the affirmative. 

"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 said.

"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," he added.

In a rebuttal to the article, LIC said the allegations leveled by The Washington Post that the investment decisions of LIC are influenced by external factors are "false, baseless, and far from truth".

"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," the company said in a statement on Saturday.

Reflecting on the positive signals in the economy, Mobius said India with the "GDP growth of 6% is quite amazing", and the inflation is down to its lowest levels in a long, long time. 

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

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