MUMBAI: The Adani group’s statement on the case brought by the US Department of Justice against its chairman and some executives helped revive investor interest in group companies’ stocks on Wednesday, with their prices rallying as much as 20%. As a result, the group’s total market capitalisation jumped by about Rs 1.2 lakh crore, BSE data showed.
On Wednesday, Adani Green Energy – for which the group’s executives are alleged to have arranged bribes to win businesses between 2020 and 2024 – told stock exchanges that its chairman Gautam Adani, his nephew Sagar Adani and another executive were not charged by the US DoJ for violating the country’s Foreign Corrupt Practices Act. Instead, “(these) directors have been charged on three counts in the criminal indictment namely, alleged securities fraud conspiracy, alleged wire fraud conspiracy, and alleged securities fraud.”
The clarifications from the company came just before trading on the bourses started. As a result, both Adani Total Gas and Adani Power closed with the maximum possible intraday gains of 20% on the BSE. Group flagship Adani Enterprises closed 11.6% up, while Adani Green Energy and Adani Energy Solutions both closed at the 10% upper circuit limits.
Among other group companies, NDTV closed 9.3% higher, Adani Wilmar ended 8.5% up and Adani Ports was up 6.3%. The group’s total market value jumped by Rs 1.2 lakh crore to about Rs 12.6 lakh crore. However, the group’s total market value is still about Rs 1.7 lakh crore off the Rs 14.3-lakh-crore mark it was at a day before the US DoJ indictments were made public.
Earlier, the group had denied all allegations in the indictment papers by the US Department of Justice.