Adani Group sees $30 billion in value wiped off after U.S. indictments

Adani Group Chairman Gautam Adani. File | Photo Credit: PTI

Shares of Adani Group companies mislaid astir $28 cardinal successful marketplace worth successful greeting commercialized connected Thursday (November 21, 2024) aft U.S. prosecutors charged the billionaire chairman of the Indian conglomerate successful an alleged bribery and fraud scheme.

Gautam Adani's flagship institution Adani Enterprises tumbled 23%, portion Adani Ports, Adani Total Gas, Adani Green, Adani Power, Adani Wilmar and Adani Energy Solutions, ACC , Ambuja Cements and NDTV fell betwixt 20% and 90%.

Adani group's 10 listed stocks had a full marketplace capitalisation of astir $141 cardinal astatine 0534 GMT, compared to $169.08 cardinal connected Tuesday.

U.S. authorities said Adani and 7 different defendants, including his nephew Sagar Adani, agreed to wage astir $265 cardinal successful bribes to Indian authorities officials to get contracts expected to output $2 cardinal of nett implicit 20 years, and make India's largest star powerfulness works project.

Adani Green successful a connection connected Thursday said the U.S. Justice Department had issued a transgression indictment against committee members Gautam Adani and Sagar Adani and the Securities and Exchange Commission had issued a civilian ailment against them.

Also read: U.S. charges Gautam Adani with defrauding investors, hiding program to bribe Indian officials

The U.S. Justice Department besides included Adani Green committee subordinate Vineet S. Jain successful the transgression indictment, it said.

Adani Green's units had decided not to proceed with the projected U.S.-dollar denominated enslaved offerings owed to developments, it added.

"Investors volition shy distant from Adani Group stocks ... and that's what this crisp selling is signifying," said Saurabh Jain, adjunct vice president of retail equities probe astatine SMC Global Securities.

"This could wounded the credibility of the radical and possibly borrowing costs volition rise," helium said.

The indictment comes astir 2 years aft U.S. shortseller Hindenburg Research alleged that Adani had improperly utilized taxation havens and was progressive successful banal manipulation, allegations the conglomerate denied.

Also successful aboriginal Asian trading connected Thursday, Adani dollar bonds slumped, with prices down 3c-5c connected bonds for Adani Ports and Special Economic Zone. The falls were the largest since the Adani Group came nether a short-seller onslaught successful February 2023.

Published - November 21, 2024 11:57 americium IST