Shares of most Adani Group companies have tumbled again after US prosecutors charged Gautam Adani over bribery allegations linked to solar power contracts. The group denies the charges, calling them baseless, while several of its stocks hit 52-week lows
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Shares of several Adani Group companies continued to face significant losses on Friday, with the majority of the group's listed firms trading lower for the second consecutive day. This decline follows the announcement that US prosecutors have charged billionaire Gautam Adani as part of an alleged scheme involving a bribe of USD 265 million (approximately Rs 2,200 crore) paid to Indian officials. This bribe was purportedly aimed at securing favourable terms for solar power contracts.
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Among the hardest hit, Adani Green Energy saw a dramatic plunge of 10.95%, while Adani Energy Solutions dropped 8.57%, hitting a 52-week low of Rs 637.85 on the Bombay Stock Exchange (BSE). The flagship firm, Adani Enterprises, also saw its stock fall by 6.98%, reaching a 52-week low of Rs 2,030. Other companies in the group were not spared either, as Adani Power lost 6.38%, Adani Total Gas fell 6.11%, Adani Ports dipped by 5.31%, and Adani Wilmar tumbled by 5.17%, reaching a one-year low of Rs 279.20. NDTV also saw a decline of 3.41%.
Despite the overall downturn in the Adani Group's stocks, two companies, ACC and Ambuja Cements, bucked the trend, with their stocks rising by over 2% during the same period, even after an initial dip.
The overall equity market showed positive movement, with the BSE Sensex up by 781.02 points, reaching 77,936.81, while the NSE Nifty gained 228.90 points to reach 23,578.80.
On Thursday, Adani Group stocks suffered even more severe losses. Adani Enterprises saw a staggering 22.61% drop, while Adani Energy Solutions fell 20%. Adani Green Energy lost 18.80%, and Adani Ports slipped 13.53%. Other companies in the group also faced substantial declines, with Adani Wilmar down 9.98%, Adani Power falling 9.15%, and Ambuja Cements dropping 11.98%. Only ACC, which saw a 7.29% drop, and NDTV, which declined by 0.06%, managed to limit their losses.
In response to the allegations, the Adani Group issued a statement denying the claims made by US prosecutors. The conglomerate insisted that the accusations of paying bribes to secure solar power contracts were baseless. A spokesperson for the group stated that it is fully compliant with all laws and will pursue all available legal recourse to address the matter. As per PTI, the Adani Group remains committed to defending its position in court against the charges brought forward by the US Department of Justice and the US Securities and Exchange Commission (SEC).
The charges against Adani Group executives have sparked controversy and concern, contributing to the volatility in the company's stock prices. The situation continues to unfold, and analysts are closely monitoring the legal and financial implications for the conglomerate.
(With inputs from PTI)
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