Adani Group stocks nosedived by up to 20 per cent on Thursday following allegations against its chairman, Gautam Adani, and seven others by US authorities for orchestrating a multi-billion-dollar bribery and fraud scheme to secure solar energy contracts.
The flagship Adani Enterprises saw its share price plummet by 20 per cent, mirrored by Adani Energy Solutions.
Adani Green Energy dropped 19.17 per cent, Adani Total Gas fell 18.14 per cent, and Adani Power slipped 17.79 per cent. Adani Ports and Special Economic Zone reported a 15 per cent decline.
The impact extended to group-associated companies, with Ambuja Cements falling 14.99 per cent, ACC shares dropping 14.54 per cent, and NDTV and Adani Wilmar recording losses of 14.37 per cent and 10 per cent, respectively. Several companies hit their daily lower circuit limits on the Bombay Stock Exchange (BSE).
The US Securities and Exchange Commission (SEC) has charged Gautam Adani and others, including his nephew Sagar Adani and executives from Adani Green Energy, with conspiracy to commit securities and wire fraud.
Allegations state that $265 million in bribes were paid to Indian officials to secure favourable solar energy contracts, with the group allegedly projecting profits of $2 billion over 20 years.
Prosecutors further allege that the accused used code names like “Numero Uno” and “The Big Man” for Gautam Adani. Arrest warrants have reportedly been issued for Gautam and Sagar Adani, with plans to circulate these through international law enforcement channels.
In response, Adani Group shares in the Asian dollar bond market suffered sharp declines, with Adani Ports and Special Economic Zone bonds falling by 3–5 cents. This represents the steepest decline since the company faced allegations from a short-seller in February 2023.
Adani Green Energy also withdrew a planned $600 million bond issue citing “recent developments.”
Reacting to the allegations, an Adani Group spokesperson stated, “The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied.”
The group emphasised its commitment to regulatory compliance and governance standards.
The SEC’s indictment accuses Gautam Adani and associates of concealing fraudulent activities from financial institutions while raising over $3 billion through loans and bonds. The charges include securities fraud, wire fraud conspiracy, and a civil lawsuit filed by the SEC.
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