Adani stocks today: Share prices of Adani Group companies crashed sharply by up to 20% on Thursday following charges against Gautam Adani and seven others in the United States regarding a multibillion-dollar bribery and fraud scheme. The US authorities revealed on Wednesday that the group allegedly bribed Indian officials for securing solar energy contracts.
Adani Energy Solutions experienced the steepest decline with a 20% drop. Adani Green witnessed an 18% decrease, whilst other group companies including Adani Enterprises, Ambuja Cements, ACC, Adani Ports, NDTV, Adani Power and Adani Total Gas recorded declines of at least 10%.
Also read: Gautam Adani charged by US over alleged $250 million bribe plot
On Wednesday, Adani disclosed a green energy investment. The disclosure coincided with the company chairman’s congratulatory message to US President-elect Donald Trump. “Adani announced the investment while also congratulating U.S. President-elect Donald Trump on his election win,” according to Reuters.
Trump’s administration has pledged to reduce regulations for energy companies, facilitating drilling operations on federal land and pipeline construction.
Adani Green Energy withdrew its proposal on Thursday for raising $600 million through U.S. dollar-denominated bonds. Despite initial pricing, the bond offering was withdrawn following recent developments.
In Asian trading sessions, Adani dollar bonds experienced significant declines, with Adani Ports and Special Economic Zone bonds dropping by 3-5 cents. These declines marked the steepest fall since the organisation faced short-seller allegations in February 2023.
Details of US Indictment Against Gautam Adani
The US Securities and Exchange Commission has filed charges against Gautam Adani for allegedly “defrauding American investors and bribing officials”.
The charges extend to his nephew Sagar Adani, 30, Adani Green Energy executives, and Cyril Cabanes from Azure Power Global Ltd for “conspiracy to commit securities and wire fraud, as well as substantive securities fraud, for their roles in a multi-billion-dollar scheme to obtain funds from US investors and global financial institutions through false and misleading statements”.
According to the indictment, Adani and associates paid approximately $265 million in bribes, anticipating $2 billion in profits over twenty years.
Also read: Congress reacts to US bribery allegations against Adani
Prosecutors indicate that participants used code names such as “Numero uno” and “the big man” when referring to Gautam Adani.
Court records reveal that arrest warrants have been issued for Gautam Adani and Sagar Adani, with prosecutors intending to forward these warrants to international law enforcement agencies.
According to prosecutors, Gautam Adani, Sagar Adani, and former Adani Green Energy CEO Vneet Jaain secured loans and bonds exceeding $3 billion by concealing fraudulent activities from their financial partners and investors.
The charges against Gautam Adani, Sagar Adani, and Jaain include securities fraud, securities fraud conspiracy, and wire fraud conspiracy. Additionally, the Adanis face a civil lawsuit filed by the U.S. Securities and Exchange Commission.
