Shares of Adani Group were reeling today after the US federal prosecutors filed bribery charges against its founder Gautam Adani. Early trade saw losses ranging between 10-20% for Adani Enterprises, Adani Green Energy and Adani Energy Solutions. The shares of Adani Enterprises hit a 10 per cent lower circuit at ₹2,539.35, while Adani Green Energy declined 17% to ₹1,172.50. The shares of Adani Energy Solutions plunged 20% to its lower circuit of ₹697.25.
Allegations of a $250 Million Bribery
US prosecutors have accused Gautam Adani, Sagar R Adani, and Vneet S Jaain of planning a $250 million bribery scheme to win Indian solar energy deals. The indictment, filed in Brooklyn, alleges misuse of false statements to US investors and violation of federal laws. It also charges the defendants to have deleted electronic evidence and misled the Justice Department, SEC, and FBI.
Effects on Adani Group Securities
The bribery allegations have affected Adani Group international securities. Their bonds, issued by Adani Green Energy, fell by a record 15 cents. On the other hand, the group's Adani Electricity Mumbai bonds maturing in 2030 dropped by 8.6 cents. The sharp sell-off in group stocks triggered a ₹2 lakh crore loss in market capitalization. This decreased the group's valuation from ₹14.31 lakh crore to ₹12.43 lakh crore.
Earlier Controversies Revived
The current troubles for the group bear resemblance to the January 2023 report from Hindenburg Research, which accused Adani Group of misusing tax havens offshore, wiping out around $150 billion from its stocks. Amid allegations, Adani Group recently completed a QIP that raised $1 billion and sold shares worth $500 million to reduce debt and fund new energy projects.
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